Average monthly rent expected to soar - Buy To Let - News - Moneyfacts


Average monthly rent expected to soar

Average monthly rent expected to soar

Category: Buy To Let

Updated: 20/06/2013
First Published: 20/06/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Continued high demand from tenants is set to push up rental costs to around £800 over the next two years, according to new research.

Costs in London are set to increase the most by an estimated £175 by May 2015, whilst tenants in the East Midlands could see their monthly repayments grow by 8%.

Typical monthly rents in the capital are currently 109% higher than in the North East of England, highlighting the dramatic variations in rents across the UK.

As well as an increase in average rental costs, around 20% of all households are expected to live in privately rented accommodation by 2015.

Despite the rather alarming predictions, the number of tenants falling behind with their monthly repayments is anticipated to decrease.

Tenant arrears have dropped since 2009 and the trend is set to continue, with cases expected to halve by 2018.

Lucy Jones of LSL Property Services, which compiled the study, said: "Fundamentally, buying a home is still becoming less affordable, not more. Renting was the future before the recession, it cushioned many during, and it's still the future for millions.

"What is clear is that there has been a significant upheaval since 2008 in the rental market and this has had a very real effect across the whole of England and Wales," she said.

What next?

Speak to a BTL mortgage adviser
Compare BTL mortgages for new landlords
Read our buy to let investment risk guide

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Number of parent landlords on the rise

The cost of renting is on the rise, but would it cheaper if you were renting from your own parents? Many children of property moguls will hope so, and with the number of parent landlords on the rise, it’s something more and more could benefit from.

Landlords: BTL mortgage rates are still falling!

The cut to base rate has had a welcome impact on mortgage rates, and it isn’t only residential borrowers who are benefiting: buy-to-let (BTL) investors are continuing to enjoy a fall in rates, particularly those looking for a longer-term deal.

Landlords – are you embarrassed about being one?

Becoming a landlord is often touted as a way to secure valuable income and build a nest egg for the future, yet once that dream has been realised, many property moguls are actually embarrassed to admit their vocation.