Average monthly rents in England and Wales are close to reaching their all-time high, according to a recent report.
The national property survey has found that the average UK rent price rose to £743 in August – a monthly rise of 0.7%. This falls just £1 short of the record high of £744 a month in October 2012.
The survey, which tracked rent prices in the 12 months to August 2013, revealed an increase of 1.3% from the same month in 2012.
Although London saw the highest rent increases with prices up 4.8% year-on-year, Wales saw the second highest jump with a rise of 2.3% bringing Welsh rents up to an average of £561.
With 12% of people in Wales living in privately rented accommodation, this will impact on a significant section of the Welsh population, particularly in highly desirable areas such as Cardiff and Penarth where rental demand is even higher.
Tony Jones, managing director of ACJ Properties, said:
“Throughout 2013, rent inflation had been easing off following the launch of government schemes to help households onto the property ladder. However, many prospective buyers are continuing to rent whist saving up for the large deposits required to take that first step into home ownership.
“The increase in average rental prices is good news for Cardiff and Penarth landlords, who can expect a better return over the next year.
“Whist tenants may be concerned about these figures, it is not all bad news. The increase still falls behind the current inflation rate of 2.7%.
“For those who continue in rented accommodation, it is important to find an accredited landlord, who will provide tenants with a legitimate tenancy agreement suited to their needs and requirements.”