Housing rent at an all time high

Rent levels in September reached a record high, averaging £816 per month across England and Wales, according to the latest Buy-to-Let Index from Your Move and Reeds Rains.

September’s figures show a rise of 1.6% from August, with annual rise from September 2014 standing at 6.3% when the average rent was £768.

Over the year to the end of September, London saw the biggest rise with 11.6%, meaning the average rent in capital is now £1,301.

The East of England saw a increase of 8.8%, with the East Midlands of 6.7%, with and the West Midlands each seeing record increases of 6.7% and 5.2% respectively.

Adrian Gill, Director of Estate Agents Reeds Rains and Your Move, commented: “Rents are rising strongly in real terms due to the recent acceleration in wages, and the much deeper and longer-term shortage of available properties across the UK – of all tenures.

“Meanwhile, as the price of everyday essentials plateaus and even falls, rents are no longer following the same broad trends. The cost of a place to live has now uncoupled from the cost of living.

“As long as this supply and demand imbalance keeps up, it is hard to see any reversal in the speed of rent rises. “In many ways housing is more essential than other expenses, so this also raises important questions about the nature of inflation. In this case, reform of the UK housing market and planning system is the only serious way to maintain steadier rental inflation.”

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