Slight increase in rent across the region

As investors piled into the buy-to-let market, residents in the East Midlands, including Lincoln, have seen rents rise, new research indicates.

While some areas of the country saw steep falls in rental prices during January, average rents in the region recorded a slight rise by 0.9%.

The average rent in England and Wales dropped by 0.3% to stand at £682 a month, as a rise in professional landlords eased the mismatch between supply and demand.

This rise has been pushing up rents, according to research released by lettings agent network LSL Property Services.

Across the country, rents were still 4% higher than they were a year ago, after they hit record highs during the second half of 2010.

Average rent increased by 0.8% in both the West Midlands and Yorkshire and the Humber, while they edged ahead by 0.2% in London.

But at the other end of the scale, the cost of renting a property fell by 2.5% in East England and dropped by 2.1% and 1% in Wales and the North West respectively. There were also drops of 0.4% in the South West and South East.

David Newnes of LSL Property Services explained why the rents across the country dropped, despite a slight raise in rents in Lincolnshire.

“The recent loosening in the buy-to-let mortgage market has boosted the supply of rental homes on the market, a crucial factor in the temporary drop in rents.

“With more products coming onto the market, there are signs that this trend is continuing into 2011, allowing a growing number of professional landlords to get onto the market, or broaden their portfolios, and take advantage of near-record rental income and strong tenant demand.”

Source: PA | Photo: Locksley McPherson Jnr