Rent holds steady in June
Average rent goes against usual seasonal increases by holding steady at £737 per month.
According to the latest Buy-to-Let Index from LSL Property Services plc the surge in first-time buyers has eased the stress in the rental market.
Over the last five years rent has seen a seasonal increase of an average 0.8% monthly increase in June.
The slowdown means that whilst rents are 2.6% higher than in the same time last year they have risen at a slower rate than CPI inflation which has risen 2.9%.
David Newnes, director of LSL Property Services, said: “The proportion of households in the private rented sector is still growing strongly, a trend that’s set to continue for the foreseeable future.
“Yet with better access to finance in the first half of this year, the immediate picture has become far brighter for tens of thousands of first-time buyers.
“And now these green shoots are starting to bear fruit for those still renting too, as milder competition for tenancies has kept a lid on the cost of renting.”
Landlord’s average return held steady at 5.3% in June, after stronger capital accumulation countered the slower rent rises.