England and Wales rents hit record high

England and Wales rents hit record high

The positives for private rented sector investors continue to rear their heads, with recent reports showing that rental prices in England and Wales have now hit record highs in 2015, giving landlords ever improving returns on their investment. 

With rents rising faster than the price of purchasing a home, the investors in the buy-to-let sector are seeing their yields improving all the time, which just gives even more incentive for new landlords to come to market, or for existing participants to expand their portfolios. 

According to the figures released by Your Move and Reeds Rains, the average price of renting a home in England and Wales has now hit a level of £816 per month as of September. This represented a rise of 1.6 per cent month on month, and an annual increase of 6.3 per cent when compared to the same time last year. 

And with the UK market still being in the midst of what is the busiest period of the year in terms of rental increases, thanks to activity, it could still be the case that we see further increases in the price people are paying between now and the end of December. 

This positive for landlords has come about, the company believes, because of the rise in wages, which has seen considerable acceleration across the UK in the last year. As a result, more people are looking to move home and are willing to compete with other potential tenants to get the home they want. This can see many paying more than the asking price, pushing rents to new highs. 

"Rents are rising strongly in real terms due to the recent acceleration in wages, and the much deeper and longer term shortage of available properties across the UK of all tenures," said Adrian Gill, director of estate agents Reeds Rains and Your Move.

Mr Gill also went on to say that the current rate of price increases may well be maintained for some time, thanks to the disconnect between rents and the general cost of living. People now see having a good place to live as the most important part of their spend, and are willing to pay more to ensure they secure somewhere that meets their needs.