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UK private sector rents hit new all-time high

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Private sector rents in Britain lifted to a new all-time high in September as the busy autumn lettings period got into full swing, a major lettings network has reported.

Average rents across England and Wales reached £768 ($A1401) per month, which is £10 a month more than a year ago, according to LSL Property Services, which owns national chains Your Move and Reeds Rains.

On a monthly basis, September's average rents were 0.8 per cent or STG7 higher than in August.

But the annual pace of rent increases is showing signs of slowing.

Rents rose by 1.5 per cent in the 12 months to September, compared with 2.4 per cent in the 12 months to August.

David Newnes, director of estate agents Reeds Rains and Your Move, said: "Autumn is always a busy period for the lettings industry, and this has been no exception.

"Looking ahead, it is likely that rents in most parts of the UK will have now reached their seasonal peak - so as the market cools along with the autumn weather there may be opportunities for some tenants to pick up a favourable deal."

The east of England has seen the fastest annual rental increase, at 3.1 per cent, followed by the southwest at 2.3 per cent and London with a 2.2 per cent rise in rents since September 2013.

Meanwhile, rents in the west Midlands were now 2.4 per cent lower than a year ago, followed by an annual fall of 2.3 per cent in the northeast and rents in Wales dropping 1.1 per cent compared to September last year.

Despite the increase in rents, tenant finances recovered in September, with 7.2 per cent of all rent in arrears, down from 8 per cent in August.

LSL put the improvements in part down to improving employment prospects.

Campbell Robb, Shelter's chief executive, said: "The severe shortage of affordable homes is forcing more families into expensive and unstable private renting, leaving many struggling to make ends meet and with little hope of putting down roots for their future.

"This has to stop."

The study is based on rents achieved on around 20,000 properties.

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Busy autumn period boosts prices, seasonal peak eyed.

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