PRS Rents Soar To New Record Highs!
UK landlords have been urged to take action to protect rental income as a new survey reveals private sector rents have risen to a new record high this year.
The research carried out by LSL Property Services has revealed that property rental prices in the UK private rental sector (PRS) have risen for the fifth consecutive month this year.
Typical monthly rents increased 2.9% year-on-year to reach £734(GBP) in August 2012, surpassing the previous high of £725(GBP) recorded the previous month.
Would-be buyers are struggling to raise the deposit needed to purchase property in the UK and many are failing to meet the tough borrowing criteria implemented by mortgage lenders and banks.
David Newnes Director of LSL Property Services said “The rental market is right in the thick of its peak season and the demand from graduates and those starting new jobs has added a new layer of competition on top of the existing pool of frustrated buyers,”
Private sector rents have reached record levels in 5 regions in the UK including:
- South East
- East of England
- North West
- Yorkshire and Humber.
London recorded the biggest year-on-year rise, increasing 4.9%.
Conversely, South West and Wales experienced a decrease in rents, with prices falling by 1.9% and 1.8% respectively.
Landlords are encouraged to take steps to protect their rental income at the beginning of a tenancy to provide financial peace of mind for their business and also for the tenant. – Click here to find out more
Legal 4 Landlords spokesman Sim Sekhon, said: “Landlords need to take action now to protect their rental income as spiralling rental prices place tenants in a potentially disasterous situation should their financial or employment status’ change. Rent Guarantee insurance can certainly benefit both tenant and landlord and remove some of the worry and uncertainty involved about receiving the full rental amount on time”.