Rents rose for the first time so far in 2011 in February, according to the latest Buy-to-Let Index from LSL Property Services.
Last month, the average rent in England and Wales rose by 0.2% to £684 per month, with rents now 3.9% higher than in February 2010. The average yield increased to 5% in February.
London saw a 0.3% increase in rents compared to January, so rents have now risen by 7.7% in the last 12 months, almost twice the national average.
The greatest monthly increases were in Wales, where they rose 1.9%, the North West and the East Midlands, where they rose 1.1% and 0.8%. The biggest falls were in the North East, where rents fell 1.4%, Yorkshire and the Humber and the South West, where they fell 1.2% and 1% respectively
David Brown, commercial director of LSL Property Services, said: “The fierce competition among renters in many areas of the country has cut short the traditional lull we tend to see between December and February. The consistently constrained level of lending to home buyers has bolstered demand – and rents – in the private rental sector during what is typically a slower period.
