Buy To Let Updated:
Increased demand for rental properties has seen the average monthly rent rise.
Tenants in England and Wales paid an average of £718 a month last month, an increase of 0.9% from May.
Wales saw the biggest increase in monthly rent, up by 2% to £545. London remained the most expensive region to rent property, with a monthly average of £1,047.
Although the increase in rental costs may not be good news to tenants, landlords are reaping the benefits. The average monthly return on rental properties increased to 5.4% in June, reflecting a total average annual return of £8,884.
David Brown, commercial director of LSL Property Services, who compiled the research, commented: "The sheer weight of tenant demand continues to push up rents across the country. Lending criteria remains tight and the number of mortgages given to first-time buyers, especially those without substantial deposits, is still a long way from the level seen before the credit crunch.
"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."
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