New data published by LSL Property Services shows that rents in England and Wales rose for 6 consecutive months up to July, reaching a record average of £705 a month. The high cost of renting means that many people are finding it impossible to save money for a deposit on their own home in the future.
In the 12 months to July, London saw rents increase faster than anywhere else, with a 7.1% rise to £1,009 a month. There was also a 5.5% increase in the North East and a 4.8% increase in the Midlands. Wales was the only region where rents remained unchanged, with the average figure standing at £547.
In the current economic climate, many people can’t afford to buy a home, and this is inflating prices in the rental market. The situation for tenants seems unlikely to improve any time soon. Summer is traditionally the peak season for renters moving in, and this additional demand is pushing prices up even further.
As well as rents going up, the cost of living is rocketing, making it impossible for the majority of first time buyers to save money towards a deposit on a house. Young people are increasingly seeking financial help from their parents to help them get on the property ladder, and many require assistance just to afford the deposit on a rented property.
In this environment, many renters are opting for flatshares, which is often a cheaper alternative. Even in this sector, however, there are four tenants competing for every room, and, in the last month alone, rents have increased by 1.4%.