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Rent price inflation halts, as more people opt to buy

The increase in the number of people buying property in the UK, especially first-time buyers, has meant that the cost of renting has stopped rising as aggressively.

This is according to a survey commissioned by LSL Property Services, which revealed that the average monthly bill in England and Wales is unchanged since May, and stands at £737. However the cost of renting has increased by 2.6pc annually, a figure which is slightly below the level of inflation.

In total five regions still witnessed a rent price increase of 0.7pc compared to May. However an average fall in price of 1.9pc in Wales means averages across the UK remain the same as May.

This reflects the surge the housing market has witnessed so far this year, and recent results that show approved mortgages for first time buyers are at a five-and-a-half-year-high, means there is less demand for renting, competition for landlords is increased, and prices have to be altered to cater for this.

However there are warnings that the price of renting could be set to rise more aggressively in the future.

David Newnes, director of LSL, said: “Milder competition for tenancies has kept a lid on the cost of renting. In the longer-term, the number who can afford to buy a first home will be limited by some fundamental constraints – earnings and the building of new homes. That is why we expect rents to at least match wider inflation in the coming years”.

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