Saving for a deposit to purchase a new home is proving difficult for many hopeful home buyers.  House prices are falling more into range and lenders are dropping interest rates to more affordable levels but deposits still remain the most difficult hurdle for many.  It doesn’t help that the money that could have gone to a deposit savings fund is instead going toward high rental fees. 

Rental properties are in high demand with fewer households being able to purchase.  Forced into rental properties many have no choice but to pay the rising cost of living in rental homes.  According to the latest report from LSL Property Services the average rental fee in England and Wales reached a new high in October after having done the same thing in September.  The report revealed that the average rental fee was £744 a month in October.  This is a 0.4% increase over September.  In a year to year comparison the average was 3.4% higher than October 2011. 

The overall rental fee average marked the seventh month of a consecutive increase compared to the previous month.  London saw the largest increase of 0.9% for the month, and south-east England had an increase in the average rental fee of 0.7%.  The largest decline that occurred was in East Midlands at 1.8%.

Campbell Robb, chief executive of Charity Shelter, remarked, “This news is yet more proof that life is becoming more difficult for renters. In a week when inflation figures revealed a tighter squeeze on family budgets, every rent rise piles on the pressure.

“With the property ladder remaining out of reach for many, these figures are bad news for our growing population of reluctant renters.”