UK Rent Rates Hit Their Highest – LSL Property Services

A recent report published by LSL Property Services suggests that September 2010 marked the 8th consecutive month of rent rate rises.

Eventually, rent prices have reached their highest level last month, thus, beating the record set in 2008. In September 2010, an average rent rate amounted to £698, which is 3.1% more than in September 2009.

Commenting on the findings, Mr. Brown of LSL Property Services said that such a significant increase in rent rates is caused by the tight conditions on the UK mortgage market. He is determined that more and more tenants are turning to rental properties as they cannot afford mortgage financing. This is the reason why buy to let market becomes a landlord's market, where the rules are set by property owners.

A separate report that comes at odds with LSL statistics was published by BDRC Continental. It shows that 58% of landlords did not increase the rent rates, whereas 12% decreased them. This means that only the remaining 30% took advantage of increased tenant demand.