Neil Wright Property Management & LettingsHouses for Rent in the Settle – Bentham – Yorkshire Dales

Rents rise as tenant numbers outstrip supply

The average rent paid by tenants in Britain increased by 2% in 2013 to £854 a month, according to property firm Countrywide.

Tenants have been squeezed by rising prices as those unable to access mortgages or raise the sums needed to buy a property have found themselves trapped in rented housing for longer, driving up demand for homes.

There are signs that the increased availablity of loans for those with small deposits are allowing people to leave the rental market, which could cause rents to fall, but Countrywide said the number of prospective tenants was still outstripping supply in some areas of the country.

It said the increase in rents was broadly in line with the 1.9% rise in the median full-time incomes reported by the Office for National Statistics, but in some areas of the country pay lagged behind.

The figures, which are based on analysis of 50,000 rental properties, showed the biggest rent rises during 2013 were in Wales, where the average amount paid went up by 3.8%. However, it is still one of the cheapest areas in which to be a tenant, with an average monthly rent of £632 and a median income which increased by 4.8% over the same period.

In contrast, in Greater London, where rents went up by 3.4% over the year, median incomes were flat and the average rent stood at £1,133 a month in December.

In central London, Countrywide said costs had dipped by 0.2%, but the average monthly cost of renting still came in at £2,315.

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