London Rents Reach Record High

on May 17, 2013

Rents have hit a fresh record in London while average rents have increased in every region across England and Wales for the first time in 18 months, a lettings network has announced.

According to LSL Property Services, which owns the UK’s largest lettings agent network, including national chains Your Move and Reeds Rains, residential property rents in England and Wales rose 0.2 percent month-on-month in April, marking the first country-wide increase in 18 months. The jump in rental rates had also marked a 3.9 percent increase year-on-year to £736 a month, the latest buy to let index from LSL Property Services showed on Friday, May 17. The index is based on rents achieved on around 18,000 properties across Britain.

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Residential property rents started edging back up again month-on-month in March, following a period of falls amid the winter slowdown. The further rise in April means that average rents have returned to levels not seen since November 2011. But figures also suggest that tenants struggle to improve their finances as there are £282 million worth of rent still in arrears.

The total annual return on a rental property rose to 5.9 percent last month. This means that the average landlord in England and Wales could expect to make a total annual return of £9,496 per property over the next 12 months, with rental income of £7,807 and a capital gain of £1,872. The average yield on a rental property climbed to 5.3 percent in April, compared to 5.2 percent in the same month last year.

“Rents everywhere are higher than a year ago at a time when pay has crept up at the slowest rate in years. But some regions are suffering even more than others,” commercial director of LSL Property Services David Brown said in a statement on Friday. He pointed out that despite the year-on-year increase across the board, the divergence between rents in the UK capital and the rest of the country was continuing, with London property rent rates rising twice as fast as compared with the rest of Britain.

**Average London Property Rent Reaches £1,110 Per Month**
London saw the biggest annual increase in rents in April, with a 7.6 percent rise pushing average rents to a fresh record of £1,110 a month. London rent prices were up 0.4 percent month-on-month in April, the
lettings network data showed.
!m[Average Rents Rise Across England and Wales](/uploads/story/2345/thumbs/pic1_inline.png)
Wales recorded the second highest annual spike, with a five percent rise taking average rents to £566. The South West, which was the only region to see rents fall year-on-year in March, recorded a 0.5 percent annual increase in April, putting average rents at £634.
On a monthly basis, eight out of ten regions saw rents rise in April. The strongest of these increases was in the East Midlands where rents rose 0.6 percent from the month before. It was followed by the North East and the South West where rents posted a 0.5 percent gain in each of the regions. Rents dropped in Wales by 0.3 percent, as compared to March. The second region to see a monthly fall was the North West, with rents in April 0.2 percent lower than a month earlier.


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