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Average residential rents in England and Wales hit a record high above £800 for the first time in July with the fastest month on month increase since records began in 2009. Rents peaked in Yorkshire and the Humber, East and West Midlands, and London, according to the data from the latest buy to let index from Your Move and Reeds Rains. On a monthly basis, rents across England and Wales rose by 1.9% to £804 in July, up from £789 the previous month and up 6.8% year on year, the largest annual rise on record. ‘Just when you think the rental market is accelerating at full throttle, it finds a way to shift into a higher gear. We’re seeing rent rises manage to hit record breaking speeds on both monthly and yearly time frames as far back as our data can go,’ said Adrian Gill, director of estate agents Reeds Rains and Your Move, . He explained that with house prices rising and demand outstripping supply in the sales market the demand for rental properties has also begun to outstrip the available stock and this is driving up rents even faster than house prices. ‘A clear and concerted effort towards new-build properties is the most sensible way to address this issue. It boils down to supply and demand. However, it’s not the only possible response. The government could also ensure that we’re making the most efficient use of our small supply of homes, for instance by doing more to make it easier for people to downsize their properties when they want to,’ he added. A regional breakdown of the figures reveals that four of the 10 regions of England and Wales saw record rent peaks in July; London, Yorkshire and the Humber, and the East and West Midlands while every region saw increases compared to last year. Stronger than usual improvements in the West Midlands saw rents rise 3.6% over the 12 months to July 2015, bringing the average rent in the region up to £583. It’s a similar story in the East Midlands, with a 2.5% annual increase carrying rents up to £584. Yorkshire and the Humber, by comparison, edged its way to a new record with a 2% year on year increase to £582 on average. Rents grew 12% on an annual basis in the East of England, to stand at £838 in July. Though it’s second only to London with growth of 12.1%, in terms of the speed of the 12 month improvement, this is actually the first time in 15 months that the rate of year on year rent increases has not accelerated. Only two regions saw falling rents on a monthly basis with a 0.1% month on month drop in Wales and the East of England. Though rents are at a peak, Yorkshire and the Humber saw a modest 0.3% monthly increase. London took the lead with a 3.3% month on month rental increase…. Continue reading →
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