Cost of renting rose in January, says LSL Property

Friday 17th February 2012

The cost of renting a home in England and Wales increased in January, according to a survey by LSL Property Services.

LSL Property, which owns which owns the UK's largest lettings agent network including Your Move and Reeds Rains, says the average rent rose by 0.1% last month from December, to £712 a month.

It is the first increase in January that the firm has ever seen.

As a result, annual rental inflation increased to 4.3% from 4% in December, representing £30 rise in the average monthly rent by in the past year.

Rents rose the fastest on a monthly basis in the West Midlands and South West, where they increased by 1.8% and 1.5% respectively.

Rents rose by 0.8% in London, where they have only fallen once in the past 13 months. However, rents fell in four regions. The biggest declines were in the East of England and Wales, where they fell by 1.7% and 1.5%.

In the last 12 months rents have risen in all regions of England and Wales but one. The largest annual increases were in London where rents rose by 6.3%. The next biggest increase was in the East of England where rents rose by 5%. Rents fell in the North East by 0.7%, although the rate of annual decline slowed from 1.3% in December.

“The rental market burst back into life unseasonably early in January, with tenants on the move trying to take advantage of what is usually a quieter period for the rental market,” said David Newnes, director of LSL Property Services.

“The depth of the underlying demand sustained a higher level of competition for rental property during the Christmas period, preventing more severe falls in rents than we’d normally see during the period.

“In January, activity has already moved up a gear in many parts of the UK, pushing rents up once more in a small, but significant rise.”

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