Rental costs averaging a record high of £725pcm
Average rental costs for property in England and Wales have reached a new record high of £725 a month, myintroducer.com reports.
According to the latest Buy-to-Let index from LSL, average rents rose a further one per cent from June to July - overtaking the previous high of £720 per month, set in October 2011.
Rents rose in eight out of 10 regions in the UK, to the benefit of nearly all private landlord lettings. Rents in the South East saw the most dramatic rise, month-on-month, rising 2.2 per cent. London however, still yields the greatest amount of rent, at £1,057 per month - up one per cent on June.
Property costs in the Midlands rose second-fastest, by 1.8 per cent, while slight falls (0.4 per cent) were reported in both the South West and Eastern England.
According to bbc.co.uk, the increase in rental costs is most probably linked to the growing numbers of people unable to secure a mortgage. This effect is also compounded by a lack of house building in the UK; house building is now at its lowest level for three years.
These conditions however, make for a fruitful market for property-to-let investors, says LSL's David Brown, commercial director.
"Rents have returned to record highs, average yields have hit their highest level this year, and returns are healthy, tempting many investors into the market," he said in a statement.