Lettings data indicate steady rise in cost of renting

Tenants signing new contracts suffered a small rise of 0.2% in rents during February 2011, pushing the average rent in England and Wales to £684 per month – 3.9% higher than a year ago, according to the UK's biggest lettings agent network. But there was also an increase in tenant arrears during the month, indicating that many renters are struggling with the rising cost of living.

The average yield on buy to let property increased to 5% in February as rents increased at a faster pace than rental property values, according to the LSL Property Services buy-to-let index. Rents increased fastest in Wales, where they rose 1.9%, and the north-west and the east Midlands, where they rose by a respective 1.1% and 0.8%.

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NetRent Comment

With the scarcity of mortgages and the relative lack of property to buy it is inevitable that the demand for rented property will increase in the short to medium term. Rents are bound to rise because there is a finite amount of rented property.

Landlords who are able to add to their portfolios are likely to see healthy returns during this time, especially as there are now more Buy-to-Let mortgage options.

Click here to view the Top 10 Buy-to-Let mortgages from NetRent Mortgages. NetRent Mortgages are independent Buy-to-Let specialists, we do not charge broker fees on Buy-to-Let mortgages.