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| Cost of renting 'outstrips inflation' in England and Wales | Cost of renting 'outstrips inflation' in England and Wales |
| (3 months later) | |
| The cost of renting a home in England and Wales is rising quicker than the rate of inflation, with the average monthly cost up 3.5% in the 12 months to May, according to LSL Property Services' buy-to-let index. | The cost of renting a home in England and Wales is rising quicker than the rate of inflation, with the average monthly cost up 3.5% in the 12 months to May, according to LSL Property Services' buy-to-let index. |
| The average rent in England and Wales rose to £737 a month, 0.1% higher than in April, and is set to reach £800 by mid-2015, the company said. | The average rent in England and Wales rose to £737 a month, 0.1% higher than in April, and is set to reach £800 by mid-2015, the company said. |
| In London, rents have risen by 7.2% since May 2012 to an average of £1,113 a month. The next fastest rise was in Wales, where rents were up 5.2% over the year, followed by the north-east with annual rises of 4%. | In London, rents have risen by 7.2% since May 2012 to an average of £1,113 a month. The next fastest rise was in Wales, where rents were up 5.2% over the year, followed by the north-east with annual rises of 4%. |
| These all outstrip the increase in the wider cost of living, which hit 2.7% in May. | These all outstrip the increase in the wider cost of living, which hit 2.7% in May. |
| LSL's figures also show that in six out of 10 regions rents are higher than a year ago, with only the south-west seeing no change since May 2012. | LSL's figures also show that in six out of 10 regions rents are higher than a year ago, with only the south-west seeing no change since May 2012. |
| Prices are being pushed up by strong demand from people struggling to get on the property ladder. The number of new tenants increased by 3.4% from April to May, and 5.1% year-on-year. | Prices are being pushed up by strong demand from people struggling to get on the property ladder. The number of new tenants increased by 3.4% from April to May, and 5.1% year-on-year. |
| A total of £276m of rent was either late or unpaid in May, down from £282m in April. The fall was due to an improvement in tenants' finances as they pay down debt, LSL said. | A total of £276m of rent was either late or unpaid in May, down from £282m in April. The fall was due to an improvement in tenants' finances as they pay down debt, LSL said. |
| David Newnes, director of LSL Property Services, owners of estate agents Reeds Rains and Your Move, said: "With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable – which will keep demand for rented accommodation high. | David Newnes, director of LSL Property Services, owners of estate agents Reeds Rains and Your Move, said: "With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable – which will keep demand for rented accommodation high. |
| "The rental market has demonstrated its flexibility in May, but will need to continue to adapt to deal with the long-term change towards levels of demand unprecedented in recent decades. May's figures are consistent with our longer-term predictions – that private renting will become a more and more vital aspect of the economy." | "The rental market has demonstrated its flexibility in May, but will need to continue to adapt to deal with the long-term change towards levels of demand unprecedented in recent decades. May's figures are consistent with our longer-term predictions – that private renting will become a more and more vital aspect of the economy." |
| Average monthly rents in England and Wales will hit the £800 mark by the middle of 2015, LSL's Lucy Jones said when speaking to the Council of Mortgage Lenders on Wednesday. This will amount to a 21% rise on 2010, and by May 2014 the cost of rent will average £765 a month. | Average monthly rents in England and Wales will hit the £800 mark by the middle of 2015, LSL's Lucy Jones said when speaking to the Council of Mortgage Lenders on Wednesday. This will amount to a 21% rise on 2010, and by May 2014 the cost of rent will average £765 a month. |
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