Rent prices increase 3.4%
25/01/2015
Rent prices in England and Wales increased by 3.4% over 2015, according to figures from estate agents Your Move and Reeds Rain.
The figures show that the cost to rent a home has increased to its highest level ever in some regions, with the average cost of renting now at £794. The largest increase over the year was in the East of England where rents increase to an average of £831, and London saw a 6.3% increase that took the average to £1,251.
Demand for rented accommodation has increased due to the difficulty many first time buyers are facing when attempting get on the property ladder. Estate agents in London have also reported that many wealthy residents are choosing to rent rather than buy in the capital thanks to the changes in Stamp Duty requirements.
The reports have also shown that paying rent has become harder for tenants as the total amount of rents in arrears rose to 9.3% in December. This is due to prices being driven upwards by improvements in household incomes and growing pressure on supply.
Campbell Robb, chief executive of the housing charity Shelter, said:
“These figures are further proof that this country’s 11 million private renters are being dealt a bad hand”
“The only way to give hope back to struggling private renters is for the government to commit to building genuinely affordable homes that people on low to middle incomes can afford to rent or buy.”
Need Financial Advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Property investors turn to land for the future
While the UK housing market is starting to show signs of stabilisation, and potential recovery, there is still a long way to go for many people to recoup the outlay on their homes. While there are, in the opinion of many people, still various opportunities in the property market, a number of investors are now looking towards land as an investment for the future. So is land the way ahead?
Mortgage lenders criticised for upping rates
Nationwide and Alliance & Leicester have been strongly criticised after announcing increases to rates on their fixed-rate deals, despite yesterday's cut to the key base rate of interest. Amid signs of a weakening housing market and predictions that economic growth will slow, the Bank of England yesterday cut interest rates by 0.25 per cent to five per cent. However, on the same day, Nationwide con...
Read MoreHomeowners told to prepare for increased mortgage rates
15/08/2014 Mortgage rates “will rise at some stage” and borrowers should be planning their finances for this eventuality, according to the Council of Mortgage Lenders (CML). During the second quarter of the year, home repossessions fell to the lowest level since quarterly records began in 2008. However, those who still have money left to repay on their mortgage should be careful they don...
Read MoreEstate agents expect end of house price falls within a year
The majority of estate agents remain optimistic that house price falls will halt within a year.Of survey of 100 estate agents by Abbey found that 30 per cent believe house prices to stop falling in six months time. Meanwhile, a further 31 per cent said that house price deflation will stop within 12 months. Phil Cliff, director of Abbey Mortgages, said: "Estate agents and homeowners believe that, d...
Read MoreUK house prices have fallen 15% in the last 12 months
News that the price of the average UK home has fallen by 15% in the 12 months to October has brought further doom and gloom to the mortgage and property markets. The monthly fall of 2.2% between September and October, as reported by Halifax, brings about the 15% fall mentioned above which equates to approximately £30,000 per home in the UK.
This news was announced prior to the 1.5%...