Rents rise across the UK – and hit record in London

Rents across the UK have reached a high of £689 per month.

According to the new LSL rental index, rents have now risen for eight consecutive months.

The previous peak was in August 2008.

This year’s rise has been largely driven by the south-east and London, where rents are also the highest on record, at an average £972 a month – a rise of 6.8% since the start of the year.

However, there were modest falls in the south-west and north-west.

LSL estimates that 10% of all rents are currently in arrears.

In London, Nicola Mulkerrins, partner for lettings at Cluttons, described activity in the rental market as dramatic.

She said: “At Cluttons we are currently seeing rents up by 15–20% on average compared to last year, with some areas such as Hyde Park and Marylebone agreeing new tenancies up to 35% higher.

“Properties are also being let at these record high prices in a matter of hours, and often without break clauses or with several months paid up front.  

“The market is so fast-paced that even relocation agents, who generally have the advantage of working for the most desirable corporate tenants, are being drawn into the bunfight for property.

“There has been a significant spike in demand for rental property at a time when supply is critically low. This imbalance is greater than I have ever seen in the London market.”