23/08/2010 - Rents up for sixth straight month
The average cost of rent is still going up in the UK, research has shown.
According to the lettings agent network LSL Property Services, landlords increased their rents by 0.5% in July to £676. This is an increase of 2.3% compared to last year.
With rent rising for the sixth successive month, the trend does not look like it will go down anytime soon
The group also said that the rent was just £144 cheaper annually compared to when the prices reached their peak two years ago, before homeowners who were unable to sell and put their properties to let on the market.
David Newnes, estate agency managing director of LSL Property Services, said: "Although house price rises have levelled off, landlords are still reaping the benefits of the constrained supply, and the improving yields have restored a healthier balance to the dynamics of property investment."
LSL added that a landlord looking to invest in property now could expect to make an average return of 3.5% a year or around £5,838.
However it also said that with house prices currently static, nearly all of these gains would come from rental income.
Copyright © Press Association 2010
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