The average price of rent paid by private tenants has shot up to £712 a month across England and Wales, according to figures from a letting agents’ network.
There was a 0.4% rise in the average price of rent in May, marking a second consecutive monthly rise in prices. The average rent price in the private sector is now the same as it was in January, following a dip in costs during February and March.
The cost of renting is now 2.3% higher than a year ago, with price rising the fastest in London and the South East.
London tenants are paying a record high average of £1,038 per month, up by 0.6% in May. Annually, rent prices in London have increased by 4.2%, and in the South East by 3.1%.
“The reality is that thousands of frustrated buyers are still financially trapped between a rock and a hard place,” said David Newnes, director of LSL Property Services.
“The end of spring has brought with it renewed activity in the rental market, and rents have returned to the level seen before the impact of the stamp duty deadline rush by first-time buyers.”
Rent increased by the highest rate last month in the North West and East Midlands, increasing by 1.7% and 1% respectively. The biggest fall in rent prices was in the North East, dropping by 1% and 0.9% in the West Midlands.
“Historically high rents and rock-bottom savings rates are hampering attempts to save for the larger deposits banks now require,” added Mr Newnes.
“In turn, fewer tenants are able to leave the sector, and the strong tenant competition is pushing up rents as a result, making saving for a deposit harder still.”
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