Tenants struggle to find rental deposits
FIRST-TIME tenants are struggling to get on to the rental ladder and are routinely having to go to the Bank of Mum and Dad for their deposits, as rents rose for the sixth month in a row in July.
The latest buy-to-let index from LSL Property Services found that in July the average rent in England and Wales rose by 0.6 per cent to £705 per month.
With annual inflation at 4.2 per cent, the average rent is now £29 pcm higher than July 2010.
The average yield reached 5.2 per cent in July, up from 4.8 per cent a year ago. The greatest annual rent increases are in London. In July, rents hit £1,009 per month – an annual increase of 7.1 per cent. The next biggest rises were in the North-East where rents increased by 5.5 per cent.