Record rents diverge from inflation
- Rents push to a new all-time record in September, now averaging £816 per month across England & Wales
- The cost of renting a home diverges from negative inflation – as annual rent rises accelerate to 6.3%
- Rents also hit individual regional records in London, South East, South West, and East & West Midlands
- Tenant finances improve despite this higher cost of living, as rent in arrears drops to 8.6% of all rent due
- Landlords see gross rental yields rise to 5.2%, while rising property prices take total annual returns to 9.4%
Rents across England and Wales have reached the highest level on record, in a trend increasingly divergent from the wider rate of consumer price inflation, according to the latest Buy-to-Let Index from Your Move.
Average rents now stand at a new record of £816 per month, after rising by 1.6% between August and September.
The pace of change is even clearer on an annual basis – up 6.3% over the last twelve months, from £768 in September 2014.
Trends in the private rented sector are increasingly divergent from the official measure of wider inflation. According to the Office for National Statistics consumer prices are by contrast now 0.1% lower than in September 2014.
On a cumulative basis the difference with inflation is starker. Rents are now almost a quarter (24.4%) higher than in January 2010, while the index of CPI inflation is just 14.1% higher over the same period. This means rents have risen by 10.3% in real terms since the start of the decade.