Buy To Let Updated:
Rental prices in England and Wales increased again in May, pushing the price of renting in London to its highest level on record.
London 's average rents rose by 0.6% in May meaning the average rent in the month was £1,038, surpassing the previous high of £1,033 in November, figures from LSL Property Services show.
The rise was driven by the second consecutive month of increasing rental prices across England and Wales , rising by 0.4% to an average of £712.
It means that rental prices have returned to the level seen in January.
On a monthly basis, rents rose in the majority of regions, with the highest rises in the North West and East Midlands, where they rose 1.7% and 1% respectively.
Compared to April, rents declined in four regions, with the largest falls in the North East, where they fell by 1%, and the West Midlands, where they decreased by 0.9%.
Rents rose annually in all but three regions, with rents falling by 1.5% in the East Midlands, 0.7% in Wales and 0.3% in the North East. Rents rose the fastest in London and the South East, where they increased by 4.2% and 3.1% respectively.
"The end of spring has brought with it renewed activity in the rental market, and rents have returned to the level seen before the impact of the stamp duty deadline rush by first-time buyers," said David Newnes, director of LSL Property Services.
"The reality is that thousands of frustrated buyers are still financially trapped between a rock and a hard place.
"Historically high rents and rock - bottom savings rates are hampering attempts to save for the larger deposits banks now require – not to mention meeting the cost of the reinstated stamp duty tax."
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