Rent rising 'below the pace of inflation'

Rental properties are becoming much more affordable, according to new research which shows that rent rises across England and Wales have slowed to less than half the current rate of inflation.

Figures show that rents have gone up by only £5, or 0.6 per cent, in the last 12 months.

This is less than half the latest 1.6 per cent annual rate of inflation as measured by the consumer prices index (CPI). 

The report was published by LSL Property Services and reveals that rents in April were at levels 12.9 per cent higher than in January 2010.

This is less than CPI inflation over the same period, which amounts to a total of 14.5 per cent. 

Commenting on the findings, David Brown, commercial director of LSL Property Services, said that although there are still challenges for Brits struggling to afford accommodation, things are improving gradually.

He added: "The British economy is still on the mend, and some tenants are still finding things tough. Even with accelerating economic growth, wages are still seriously behind where they were ten years ago after the effects of inflation are taken into account.

"Things are getting better, and this is apparent in the rental market. The cost of living challenge will be with us for some time. Yet it will be overcome by supporting the industries that supply vital services and by conquering the real culprit, stagnant wages."

Over the 52-month period since the start of 2010, there were 33 months where inflation was higher than rent rises.

However, these trends have slowly started to change. The LSL research shows that rents rose more quickly than inflation in only the remaining 19 individual months and April 2014 is the eleventh consecutive month where rent rises have been less than inflation.

Published 19th May, 2014

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