Rent costs rose in January

In a report released by the LSL Property, London, claimed an average rise in rent by 0.1% in January. 

As a result the, the rent inflation rose to 4.3% from 4% in December.

Looking at the regional changes in the rent rates, it was observed that West Midlands and South West areas registered the highest rate change in rate at a monthly basis to 1.8% and 1.5% respectively.

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%.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 possible reasons that can be attributed to rise in rental rates are:

• Unusually high number of tenants looking for a limited number of property in London
• Low rates on Mortgage lending loans but still many are reluctant to opt for this option, therefore renting  being a main one
• Rental arrears also remained high in January, according to LSL, with 10.7% of all rent late or unpaid at the end of the month.

Posted in: east of England, LSL Property, mortgage lending, property London, rent inflation, rents fell, rise in rent, southwest, wales, west midlands