Rents are still going up, but the rate of the increase is slowing as tenant arrears worsen, LSL reported this morning.
The company, parent to lettings chains Reeds Rains and Your Move, said that the average asking rent in October stood at a new high of £720 per month.
However, the monthly rise was just 0.2%, which is the lowest monthly increase since February. Annual rental inflation also slowed to 4.1%, a decline from 4.3% in September.
On a monthly basis, rents increased the fastest in the South-East and the East of England, where they rose by 1.5% and 0.8% respectively compared to September. Rents fell in three regions on a monthly basis, dropping by 1.4% in the North-East and the South-West, and by 0.8% in Wales.
Over the course of the last year, London’s rents have risen faster than any other region. However, the monthly rate of increase slowed in London, with rents increasing to £1,030 a month, a 0.1% rise compared to September.
Tenant finances took a turn for the worse in October, with 10.1% of all rent late or unpaid at the end of the month, compared to 8.6% by the end of September. However, despite the increase, the level remains below the previous 12 month’s average of 10.3%. In October, unpaid rent totalled £287m, an increase from the £243m unpaid in the previous month.
LSL said that against a backdrop of rising unemployment, it expects tenant arrears to climb over the next year.
.jpg)
.png)
Comments