Average rents increase at double rate of pay rises

Average rents across England and Wales stood at £753 per month as of November 2013, up 1.6 per cent compared with November 2012.

By comparison, wages have risen by just 0.8 per cent on an annual basis. Average regular pay before tax stands at £1,941 per month, according to the latest official figures.

Rents across England and Wales remain significantly higher than a year ago, despite a seasonal drop of 0.7 per cent (approximately £5) from October.

There was also annual growth in lettings activity in November. The number of new tenancies agreed across England and Wales increased by 1.5 per cent compared to November 2012.

This was despite a slowdown on a monthly basis, with 6.3 per cent fewer new lettings than in October.

Maria Lucas, managing director of award winning Let Lucas Rental Specialists, said: “Despite the press hype, there is no boom in buy-to-let. This has been a good year with landlords certainly more active in the market.

“We expect buy-to-let lending in 2013 to be in the region of £20bn, and whilst this would represent a material level of growth over 2012, we should keep things in perspective.

“This only takes us back to the level of buy-to-let lending that we had ten years ago, and over that period the private rented sector has increased by 80 per cent.

“Any talk of boom conditions in the buy-to-let market would appear to be premature indeed.”

Letting is a complex, specialist field incorporating more than 50 Acts of Parliament and 70 sets of regulations which landlords should be aware of.

Contact Maria Lucas for a no obligation consultation or guidance on 01926 350007.