Rents increased in England & Wales on an annual basis by 1.6% during February 2014, up to an average of £743 per month according to LSL Property Services.
This represents the fastest increase on an annual basis since November 2013.
David Brown, commercial director of LSL Property Services, said: “Property to rent remains in high demand. Despite great improvements in the prospects of many first-time buyers, there are still millions of households who rely on a healthy private rented sector for their homes.
“February’s annual increase remains below the rate of wider inflation. However, this latest uptick and the high level of demand in the lettings market emphasise the importance of ongoing investment. Landlords have invested heavily in expanding their portfolios and need to continue to do so to keep pace with demand from tenants.”
Regionally seven out of ten saw a rise in rents on a monthly basis between January and February, with Yorkshire & the Humber and the West Midlands seeing the highest monthly rises at 1.2% on a monthly basis. The next fastest monthly rise was in Wales, with a 1% increase, while the East Midlands saw rents rise 0.6%.
Of the three regions to see a monthly fall in rents, the fastest drop was in the South East, down by 1.5% since January. Meanwhile rents fell by 0.6% on a monthly basis in the East of England, and by 0.1% in the North West.
The majority of regions also saw rents rise on an annual basis with the South West seeing the fastest rise, up 4.7% from February 2013, followed by London at 3.3% in London the North West at 2.2%.
In contrast rents in the East of England now average 3.1% less than a year ago, followed by a 2.3% annual drop for Wales and a 1.9% annual fall in the West Midlands.
Brown said: “Across the UK there has always been a huge level of variation between different local markets. But in the last year some of these differences have become more apparent as the property market has witnessed such a rapid shake-up and improvement. Those looking to rent, or to let a property should look into the intricacies of their local market, which can have at least as much bearing on the level of rent as the property itself.”
