Rose Hill For Thisismoney.co.uk
Tenants have seen their rent rise by another £31 over the past year to £799 on average, new figures reveal.
Although average rents are down from a record high of £816 in September, prices across the year as a whole have risen across England and Wales, a buy-to-let index suggests.
Those in London have faced the highest increases, with average rental costs rising by 12 per cent to an average of £1,271.
The increases are considerably above the rate of average wage growth means that millions of renters will see their living costs taking up a greater proportion of their pay packet every month.
The average monthly rent was £806 in October, but fell to £799 in November, the index from estate agents Your Move and Reeds Rains reported.
High: London rents continue to stand 8.9 per cent higher on an annual basis, making the average monthly rent £1,271.
Wales and the South East were the only regions where rent fell annually at 1.8 per cent and 3.5 per cent respectively.
Tenants in London saw prices rise even faster than in surrounding southern regions, where locations lead the monthly rent falls. London rents continue to stand 8.9 per cent higher on an annual basis, making the average monthly rent £1,271.
Yorkshire Humber saw a 0.2 per cent monthly rise to £554 while rents in the East Midlands rose by 1.0 per cent to £610, which means rents are now at record highs in both regions.
Earlier this week Manchester, Liverpool and Cardiff were crowned the top three postcodes for rental returns.
Rising rents: Tenants face increasing costs every year, and those in London face the highest cost
Adrian Gill, director of Reeds Rains and Your Move, claimed that landlords have become ‘fashionable targets’ for the Government and the Bank of England over the past few months. He added that the policies and campaigns were missing the mark and will instead drive up rent.
‘Negative campaigns and unconstructive policies – designed to attack landlords rather than support tenants – will not make rents lower or provide more homes. The effect will be quite the opposite, forcing rents upwards,’ he said.
Last month, the Institute for Fiscal Studies warned that the Chancellor’s buy-to-let stamp duty hike would push up rents and slow down the building of new homes.
This is because the costs incurred by landlords will rise, which the IFS claimed would result in costs being passed on to tenants.
In the run up to the festive period, tenant finances worsened as arrears rose to 8.2 per cent during November. This follows a drop in arrears to 7.9 per cent in October.
New heights: Yorkshire Humber saw fresh record rents at £554 per month, an annual rise of 0.2 per cent (Pictured: Brewery Wharf in Leeds)
The Christmas season often has an effect on arrears. However Mr Gill suggested that there have been great improvements in tenant finances in the long term.
‘This measure of arrears has almost halved since its peak at nearly 15 per cent at the start of 2010. With earnings rising and the labour market strong, there is a feeling of affordability for many tenants. But not everyone can feel that benefit when there aren’t enough homes to go round,’ he said.
Buy-to-let landlords have started to see returns on their properties increase in recent months to above ten per cent
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