Private sector rents edge above inflation

Credit: Owen Humphreys/PA Wire

Private sector rents are back on the increase in real terms for the first time in more than a year, a major lettings network has reported.

The average monthly rent across England and Wales increased by 2.0% in the 12 months to July, edging higher than the 1.9% rate of Consumer Price Index (CPI) inflation, according to LSL Property Services, which owns national chains Your Move and Reeds Rains.

Rents first dipped below inflation in June 2013 and continued on a trend of below-inflation increases up until last month, LSL said. The average monthly rent now stands at £753.

The fastest annual increase was recorded in the South East, where rents typically stand at £775, showing a 3.8% uplift on a year ago.

This is followed by a 3.0% annual increase in the North West, where average rents are £594, and a 2.3% year-on-year rise in London, where the typical monthly rent is #1,143.

In Wales, rents are up by 1.2% year to reach £562 on average. The North East is the only region where rents have fallen over the last 12 months, edging down by 3.8% to reach £507 typically, LSL said.