Recent figures released from property firm, LSL, have revealed that residential rents in England and Wales hit a record high in September. According to the research, rents rose by 1.3% month-on-month, with the average tenant now required to pay around £757 per month to rent a property.
Although rents have dropped in some areas of the UK, they increased in Yorkshire and the Humber, the West Midlands, the East Midlands, the North West, Wales, London and the South East, leaving just three out of ten regions across England and Wales avoiding rent spikes.
The East of England was the only region to see a drop in rental costs, both year-on-year and month-on-month. Rental figures in this region fell by 1.4% year-on-year.
Annual growth in London is currently running at 4.4%, the highest of all the regions, followed by Wales at 3.1 %.
Figures for September revealed a staggering gap between rental costs in the North East and London. The average cost of renting a property in the North East is around £533 but in London, this figure is almost double at £1,141.
Director of campaigns, policy and communications at Shelter, Roger Harding, said: “As more people are priced out of home ownership and waiting lists grow longer, too many families are being left trapped in the unstable and expensive private rental market.
“Every day, Shelter hears from people who are having to cut back on essentials as they struggle to pay their rent each month.
“We need the Government to fix our rental market to provide more security and get on with building many more genuinely affordable homes.”
Commenting on the findings from the report, David Newnes, director of LSL Property Services, said: “Higher rents in almost every region show that, despite Government schemes, buying a first home is still a difficult aspiration.
“This is not only down to low salary growth, but also a general shortage of supply, which is the underlying reason why homes are getting more expensive.”
Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.
Julie is a member of the Insolvency Practitioners Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.