Rents recorded their largest monthly increase in a year in August, according to the latest Buy-to-Let Index from LSL Property Services.
In August, the average rent in England and Wales rose by 1.2% to £713 per month, surpassing the previous record high of £705 in July. This is the largest monthly increase since August 2010. With annual inflation at 4%, the average rent is £27 pcm higher than August 2010. The average yield was 5.2% in August.
On a monthly basis, rents increased fastest in Wales and the South East, where they rose by 2.1%. The next biggest increases were in London and the South West, where they rose by 1.5% and 1.3% respectively. Rents only declined in the Midlands compared to July, falling by 0.4% in both the West Midlands and the East Midlands.
In the last year, London has seen stronger rental inflation than other regions of England and Wales, with rents hitting a new record high of £1,025 per month in August. This is an annual growth of 6.6% – equivalent to £63 per month. The next biggest annual increases were in the West Midlands, where they rose 6% and the North East, where they increased by 4.3%. In the last year, average rents have risen in all regions except Yorkshire and the Humber, where they have fallen by 0.5%
David Brown, commercial director of LSL Property Services, said: “We are in the thick of the busiest time of year for the rental market
