Tenants seeing further rises in the cost of rent

It has been the subject of debate over the past few months, what with the difficulties for some groups in getting onto the housing ladder in the UK property market about whether it is more affordable to buy or rent.

However, it has now been reported that the price of taking on rental homes across England and Wales is on the rise yet again in June, pushing home the argument that taking out a mortgage will work out as cheaper in the long run.

It has been reported by LSL Property Services that the monthly expenditure tenants must part with for the privilege of renting a house or flat from a landlord rose for the third consecutive month in June. This means that the average family is now paying 0.9 per cent more than they were in May.

The cost of property to rent rose in nine out of the ten measured regions of England and Wales, which left many feeling the hit.

Not only this, but the cost of renting a home has now reached £718 per month. This leaves the total sitting at just £2 less than the record high seen in October of last year of £720.

Surprisingly, the south-west, which often has the steepest prices for property, saw the only fall in monthly charges throughout the month, while Wales saw a two per cent rise, the largest in the country, followed by the north-west and the west midlands which each saw costs go up by 1.7 per cent.

David Newnes, director of LSL Property Services comments: "The sheer weight of tenant demand continues to push up rents across the country. Lending criteria remains tight and the number of mortgages given to first-time buyers - especially those without substantial deposits - is still a long way from the level seen before the credit crunch. With higher rents and the growing cost of living eroding how much tenants can save towards the large deposits required to buy, it’s no surprise to see the private rented sector swelling by 262,000 households a year."