Average rental asking prices rose by 1.9% in the second quarter of this year, to reach £876 a month. It means that rents are now 4.4% higher than they were a year ago, according to the website FindaProperty.
In London, rental prices were up by 14.5% compared with a year ago, but rental prices in the second quarter of the year went up by only 0.6%, suggesting the rental boom is slowing down. The average monthly asking price for a rental property in London is currently £1,979.
The portal also reports that there was a 10% rise in supply between March and June.Samantha Baden, property analyst at FindaProperty, said: “The resurgence of the rental market, which started at the end of 2009, has been led by flats. However, over the last few months, we’ve seen houses driving up rental prices. This suggests that renting is becoming increasingly popular –or necessary – across all types of household. The net result is that rental yields are generating better returns than many cash or equity investments, making it an increasingly attractive prospect for those who can afford to invest.”