No Recovery Needed in the Buy to Let as Rents Rise for Fifth Straight Month
Good news surrounds the buy to let market, as property rents rise for the fifth straight month. This is the result of demand outpacing the availability of property to let, as reported by property information group Zoopla.
The average cost of renting a home increased by 1 per cent in June to 673 pounds a month. This is the highest level seen since November 2008, said letting agent network LSL Property Services. Driven by the shortage of rental properties available, the group said, rents had increased 3.2 per cent over the past year. David Brown, commercial director of LSL Property Services, said: "Rents have continued their upwards trajectory, and are just a few pounds away from their peak levels in 2008. "The seasonal pick-up was exaggerated by the squeeze in the supply of rental accommodation." London had the biggest increase in rent during the month of June with the cost of letting a property rising 1.9 per cent. Also, rents increased by 1.4 per cent in the North West and 1.3 per cent in the North East, respectively. The West Midlands broke the trend where the cost of letting a home dropped by 1.7 per cent during the month of June. (All figures from the Association of Residential Letting Agents.)