| Fri 27 May 2011 |  Paul Lucas |
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The average rent paid by tenants in England and Wales has now reached a record high of £692, according to letting agency network LSL Property Services.
The company found that rents rose by 0.8 per cent in April compared to the previous month and are now 4.4 per cent higher than they were at the same point last year. This means that landlords are typically charging nearly £30 a month more than a year ago, with London and the South East suffering the largest annual rent rises.
Rise in demand
It appears that demand for rental properties is on the increase, particularly following the warm weather and the long bank holiday weekends. Indeed the rise in demand has pushed the cost of renting up to the same record level as in November, 2010, with the east of England being the only region where rents had fallen annually.
Part of the reason for the increase is that landlords are facing a decline in property values – the proportion of tenants in arrears increased, with 11.8 per cent of all UK rent unpaid or paid late by the end of April. However, the calendar was one of the main reasons for these late payments as the final bank holiday of the month caused delays and thousands of tenants took the time to book holidays.
Whatever the reasons however, landlords have been warned to be vigilant in the coming months, particularly in light of public sector spending cuts and changing employment situations which may hamper tenants’ ability to meet demands.
Savings for tenants
Tenants facing rent increases may want to look into ways to reduce their monthly outgoings. There are a number of steps that can be taken.
| Perhaps the most significant is to review their financial products. They can chat with their landlords about their gas and electricity suppliers and ensure they are using online direct debit deals, as these are generally the cheapest. They can also examine their insurance products. Most tenants will take out contents insurance for the items they keep within their rental home. However, it is the landlord’s responsibility to cover buildings insurance and also to insure any items they own within the property. |
Finally, tenants should look at simple ways to reduce their expenditure. This may mean reducing their number of nights out a month; cutting out magazine subscriptions; car sharing; or just driving in a more environmentally friendly manner to reduce fuel consumption. It’s also worth looking into online shopping instead of trawling around the high street. By shopping online you can typically save on travel expenses while also sticking more rigidly to the items you originally planned to buy rather than be tempted into additional purchases. You can also capitalise on promo codes on everything from fashion to groceries for additional savings.
