How much are average rents in England?

With salaries largely frozen for much of the population, living costs continue to rise. It can seem that workers have less money each month for housing and energy costs. Yet a recent survey shows that tenants are paying average rents of £745 in England and Wales.

The recent housing data suggest that average rental rates increased by 1.1% in the last year. While this may seem like a steep rise, it is actually less than the cost of living. Inflation edged slightly higher, with the Consumer Price Index showing a 1.5% increase. LSL Property Services plc released the findings as a part of their annual survey data.

While annual rents increased at a measured pace, there were some signs of slightly overheated housing markets in certain regions. In total, the aggregate markets went up by .6% just during the month of May 2014. With over half of the annual increase occurring within the past 30 days, it could be sign of a growing trend towards higher housing costs for families across the UK. However, it could also suggest that a larger percentage of landlords increased their rents last month as a part of a periodic cycle of annual adjustments.

A recent yourmoney.com article by Paula John cited a few hotspots where rental rates showed the highest increase. The range varies widely throughout the UK and it is really set by the demand and supply of housing in the local market. While average housing expenses only increased by 1% in London, they peaked 3.9% this past year in the South West. East Midlands rents also matched that gain, with a 3.8% increase.

The news is not all bad for lower income tenants however. The average rates that some tenants paid for their rent actually dropped in the North East by 3.6%. It really shows how stark the differences are in regional markets.

Households receiving monthly benefit payments are offered some relief from the rising prices on their flats or homes. However, there are signs that the growing public share of rent subsidies is exceeding the original cost guidelines by the government. The Labour party is quick to remind taxpayers that housing prices are become too unpredictable, which is in turn causing more tenants to turn to their local councils to request rental assistance.

Labour suggests that tenants deserve to be able to lock in their rental rates for a 3 year term, thereby giving them some guarantees about their future housing costs. It gives the average household the security to know that they can expect a certain price for a reasonable period of time, plus have enough notice of a future rent increase to make the necessary adjustments in their budget or living situation.

For now, average rents are £745 in both England and in Wales. The prices can be a tough pill to swallow for some lower wage earners. Pensioners and those receiving benefit payments may find the rates even more difficult to afford. Fortunately there are financial aid programmes as well as schemes in place to assist tenants and to control homelessness.  Read prevent unnecessary evictions.