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Rents see unexpected new year rise

Property rental rates have spiked earlier than expected in 2012, according to new research.

The figures, produced by lettings agency LSL Property Services, showed that average monthly rents in England and Wales rose by 0.1% to 712 in January this year.

The New Year rise has been welcomed by observers, as it marks the first time rents have risen month-on-month since October last year. It is also the first time a rise has been recorded in January since records began four years ago.

The rental market experienced a boom last year, accompanied by a surge in profits among buy-to-let investors, as people became trapped by the soaring deposits demanded for new homes.

Commenting on the state of the rental market, LSL Property Services director David Newnes said: “The rental market burst back into life unseasonably early in January, with tenants on the move trying to take advantage of what is usually a quieter period for the rental market.

“The depth of the underlying demand sustained a higher level of competition for rental property during the Christmas period, preventing more severe falls in rents than we’d normally see during the period.”

Copyright Press Association 2012