Buy To Let Updated:
The cost of renting in the UK rose above £700 a month for the first time in 2011.
With millions of people having to turn away from the mortgage market in recent years, the size of the rental sector has increased significantly.
The increased demand has seen prices breach the £700 per month barrier for the first time ever.
Figures from BM Solutions show that the average monthly rent climbed to £716 in 2011, up from £682 in 2010.
Unsurprisingly, London is the most expensive place in the UK to rent a home, with tenants facing an average monthly payment of £1,212.
In fact, the average monthly rent in the capital is 69% higher than the UK average of £716 and 41% above that in the South East (£858) - the next highest region.
The lowest average rents are in Wales (£474 per month), the North and Yorkshire and the Humber (both £488 per month).
There was significant variation in rents across the regions in the UK .
The largest increases were in East Anglia (8.0%) and the North (6.9%). The South East and Greater London recorded rises of 5.8% and 5.6% respectively.
By contrast, rents increased by less than 1% in Wales (0.1%) and Scotland (0.7%).
"There is a very healthy demand for rental properties across the UK right now, which in part may be driven by the costs associated with buying a home: costs which, for some, will only increase as the stamp duty holiday comes to an end," said Phil Rickards of BM Solutions.
"Average gross yields on a buy to let property have been just over 6% for the past two years, driven by growth in rental values.
"However, with house prices likely to remain broadly flat again this year, buy-to-let landlords can again expect little capital gain on their investment in 2012."
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