Residential rents across England and Wales now average a record £768 per month, or £10 higher than in September 2013.
Annual growth has slowed dramatically since August, when rents were 2.4 per cent higher than a year before.
They rose just 1.5 per cent over the twelve months ending September 2014, according to the latest Buy-to-Let Index from Your Move and Reeds Rains.
The lettings agent network’s director David Newnes comments:
“Historically rent rises have broadly tracked inflation. And as the wider cost of living grows ever more slowly, so too has the cost of renting a home.
“That said, autumn is always a busy period for the lettings industry, and this has been no exception. Looking ahead, it is likely that rents in most parts of the UK will have now reached their seasonal peak – so as the market cools along with the autumn weather there may be opportunities for some tenants to pick up a favourable deal.
“Landlords predict slower rent rises to continue for at least a year. The latest LSL Landlord Survey shows expected rent rises of just 1.8 per cent over the next twelve months, below the target rate of inflation.
“Another critical development in the rental market is the resurgence of demand in regions outside of London and the South East. Regions with a new charge of economic growth, like the North West or East of England, have now led annual rental growth on an equal basis with the capital for most of this year.”
Tenant finances recovered rapidly in September, with just 7.2 per cent of all rent in arrears, down from 8 per cent in August and 8.5 per cent a year ago in September 2013.
Newnes says tenants are benefiting from “dramatically recovering employment prospects” along with a healthy rental market.
“Homes to rent and new job vacancies are two closely intertwined aspects of economic flexibility – renting can allow people to move to take up employment, while a resurgence of vacancies is enabling many existing tenants to get their finances in order.”
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