Rents have reached a new high in the West Midlands according to new research which also suggests soaring levels of arrears.
It now costs an average of £586 a month to rent a home in the region – a new high, despite a country-wide fall last month.
That came after a 0.5 per cent rise in August, and a 4.6 per cent annual increase, despite overall average rents falling month-on-month for the first time since March.
Meanwhile, private rental sector tenants’ arrears have reached the worst levels seen across England and Wales in two-and-a-half years, with rents reaching new record highs in the West Midlands, according to the latest Buy-to-Let Index from Your Move and Reeds Rains.
Tenant arrears made up 9.9 per cent of rents payable in August, marking the highest figure seen since December 2012, the index showed.
Adrian Gill, director of Your Move and Reeds Rains, said the overall pause in rent rises across England and Wales follows a series of “blistering rent rises” that have already taken place this year.
He said: “Rents are rising rapidly on an annual basis, underpinned by an improving economic picture for many potential tenants - and the peak lettings season is only just about to start this autumn.”
Looking at the worsening arrears levels, Mr Gill said that many tenants who are seeing their incomes rise as the economy improves are helping to bid rents up at a time of “rapidly growing demand” in the sector.
This in turn is making life tougher for those tenants who are not seeing the same improvement in their financial position, he said.
The latest rental arrears figure is still way below a record set in February 2010, when 14.6 per cent of rent due was in arrears.
The index is based on rents achieved on around 20,000 properties across England and Wales.
Across England and Wales, the typical monthly rent was £803 in August – a £1 fall compared with July.
Despite the slight fall, average rents in August were still 5.5 per cent higher than a year ago.
