Rents rise across almost all of England and Wales

According to the latest buy-to-let Index from LSL Property Services PLC rents rose in nine out of ten regions of England and Wales in June.

These rises marked the third consecutive month of increases, bringing the average rent in England and Wales up 0.9% to £718 per month. This is just short of the record high of £720 pcm in October 2011.

Annual rental inflation also increased to 2.4% from 2.3% in May.

The South West was the only area where rent dipped with Wales seeing the largest rise, with rents increasing by 2%, followed by the North West and West Midlands where rents rose by 1.7%.

David Newnes of LSL said: "With higher rents and the growing cost of living eroding how much tenants can save towards the large deposits required to buy, it’s no surprise to see the private rented sector swelling by 262,000 households a year."

For a second month in a row, London rent hit a record high of £1,047 after a rise of 0.9%.

Mr Newnes said short term factors also played a key part in London with tenants moving to secure properties ahead of the disruption of the Olympics.

Some landlords across the city have also terminated contracts for their tenants in order to rent out the properties on a lucrative short term basis.

If the trend continues an average investor in England and Wales could expect to make a total annual return of 7% per property over the next 12 months — equivalent to £11,538 per property.

Today's Conveyancer