Rents in London jumped again in August to another record high of £1074 per month, heaping more pressure on would-be buyers squeezed out of the property market.
The figures, from Reeds Rain and Your Move owner LSL Property Services, showed the fastest rises in rental costs in London and the South East compared to August last year as rents rose by 4.9% and 3.9% respectively.
LSL director David Newnes said: “The rental market is right in the thick of its peak season, and the demand from graduates and those starting new jobs has added a new layer of competition on top of the existing pool of frustrated buyers. London and the South East may be the powerhouses of the national rental market, but rent rises haven’t been limited to these areas by any means.”
Nationwide rents rose for the fifth month in a row, reaching £734 a month after rising 1.2% from July. In London the monthly rise was a steeper 1.6% .
The strong demand for rentals, with mortgages in short supply, is triggering a boom for landlords. Buy-to-let investors saw an average total annual return of 5.3% on a property in August, up from 5% in July. If prices maintain the current trend, landlords in England and Wales could get total annual returns of 9.2% in the next year — equivalent to £15,191 per property.
