Buy to Let Rents Hit a New Record High

Buy to Let Rents Hit a New Record High

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Buy to Let Rents Hit a New Record High

Buy to let rents are still going up – with tenants paying an average new high of £718 a month.

The cost of renting a private home has surged by 4.3% in the past year, leaving tenants having to find around an extra £1 a day more than they were paying in September 2010.

Rents are growing faster in the South East and East Midlands than other regions.

The study was released by LSL Property Services, the firm behind several major letting agent chains like Your Move and Reeds Rains.

Director David Newnes explained rents were rising across the country as demand was stoked by would-be homeowners who cannot afford to save deposits or raise a mortgage to buy a home of their own.

“In many cases, buying a home is now cheaper on a monthly basis – provided renters can get past the stumbling block of the substantial deposit requirements,” he said.

“For the majority, saving a £25,000 deposit is a Herculean task as inflation and rents climb – and most would-be buyers are biting the bullet and prolonging their stay in increasingly costly rental accommodation.

“As things stand, we won’t see competition amongst prospective tenants diminish without a substantial expansion in the supply of rental properties available on the market,” he warned.

Housing charity Shelter claims that private rents are unaffordable in more than half of council areas in England and Wales.

Their study revealed that in 55% of council districts, tenants were having to pay at least a third of their take home in rent, leaving them short of cash to pay other living costs, like food and utilities.

Despite this, another survey, by financial services firm LV=, highlighted that many households would rather cut back on food than miss a holiday, professional haircuts or switch off their satellite TV.

The study also revealed that 77% of households were making lifestyle choices to cut costs as the cost of living rises.

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Mick Roberts on BBC Radio Nottingham