Increasing Rental Prices Affecting Tenant Finances
PRS rents are still rising squeezing tenant finances even further
A new study of the UK rental property market has shown that the cost of Private Rented Sector (PRS) rents are still increasing, following the third consecutive rise in rents being observed in June.
Research by LSL Property Services showed that the average rent paid to landlords by tenants in the UK increased by 0.9% month-on-month in June and fell just short of the record £720 (GBP) seen in October 2011.
The research also revealed that the rate of annual rental inflation in the UK also crept up to 2.4% last month, up from the 2.3% in May 2012.
Tenants in Wales saw prices rise by 2% bringing the average rent to £545 (GBP) per month, whilst in London, average rents increased by 0.9% in June, reaching a new high for the second consecutive month in a row.
The average cost of renting in the UK capital is now approximately £1,047 (GBP) per calendar month, up 4% on the same time last year.
Tenants are advised to budget their finances carefully and always ensure that the rent is the first thing paid every month. New tenants should also ask landlords about Rent Guarantee insurance to ensure that rent money is always covered despite any change in their financial circumstances.