Buy To Let Updated:
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.
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