Rents in England and Wales are now more expensive than ever after they reached the milestone of £ 757 per month of September-a level that is "devastating" for tenants, according to housing charity Shelter.
The figure for September-1.8% on August and an increase of 2.1% per year-is £ 13 per month more than the previous record high set in October 2012, according to LSL services index of buy-to-let.
The number of new leases increased by 6.5% in September compared with August and 9.2% compared to September 2012.
Rents went to nine out of 10 regions between August and September, with the fastest recorded rate in the Southeast, where rents have increased by 3.3%.
The Northwest experienced an increase of 2.7% monthly, followed by West Midlands at 2.6%. The only region where rents have fallen was the East of England, where there was a decrease of 0.8%.
Every year, the region was the only one to experience a fall in lease-up 1.4 percent from September last year.
However, rents in Wales, West Midlands, East Midlands, North West, Yorkshire and the Humber, London and the South East are now at unprecedented levels. Only the North East, East of England and Southwest have never seen above them.
David Brown, sales manager of LSL Property Services, said: "a new peak tenant demand drove rents to new heights, well above previous records. The highest rents in nearly every region show that, despite the Government systems, buying a first home is still an aspiration. This is not only to increase low pay, but also a general supply shortage-that is the underlying reason why the houses are always more expensive.
However, Roger Harding, a spokeswoman for the charity Shelter, said: "this is a devastating news for tenants of 9 million. As more and more people are priced out of home ownership and waiting lists grow longer, too many families are left trapped in unstable and expensive rental market.
"Every day refuge hear from people who are having to cut essentials are struggling to pay rent each month. With wages flat-lining, the fact that rents reached record levels mean that even more people will find it harder and harder to make ends meet. "
Meanwhile, gross yields on a typical rental properties rose to 5.4 percent in September, from 5.3% in August-taking the annual total returns to 7.4% in September, compared to 6.1% a month earlier. In absolute terms this equates to an average return for £ 12,129 owners, with rental income of £ 8,164 and capital gain of £ 3,965.
LSL said that if Property Rental prices continue to rise at the same pace they have in the past three months, the average investor buy-to-let in England and Wales could expect to make a return of 13.6% total annual next year-or £ 23,028 each property.
The catch-all term applied to investors who purchase the property with the sole intention of let to tenants, rather than living in themselves, with income from let usually used for repayment of the loan. Buy-to-let investors have to take specialized loans that carry higher interest rates and require a much larger store than a standard mortgage. Other expenses may include legal fees, income tax (on profits you hire), tax capital gains (if it sells the property) and "void" periods when the property is unlet.
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