Buy To Let
Pace of rent rises slow in May
Landlords slowed the pace at which they raised rents last month despite an increasing numbers of tenants, according to LSL’s buy-to-let index.
The average rent in England and Wales rose by 0.1% between April and May – lower than the recent average of 0.3% per month.
At the same time, there was a 3% increase in the number of new tenants compared to the previous month.
LSL Property Services director David Newnes said a spurt of first-time buyers may have reduced the number of new tenants: “Looking further ahead, sustaining the increase in new buyers will depend on how many tenants are able to build big enough deposits to get a mortgage.
“With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable – which will keep demand for rented accommodation high.”
Despite a reduction in the pace of rising rents, the average rent remained 3.5% higher than May 2012.
London saw the biggest annual rent rise at 7.2%, followed by Wales and the North East. The South West and North West saw no annual rent rise.
Average rental yields across England and Wales in May were 5.3%, with the highest yields to be found in Yorkshire and the Humber and the East Midlands.
The total amount of rent late or unpaid reduced by £6m in one month. Total arrears in May were £276m, compared to £282m in April and representing 8.2% of all rent across England and Wales.
