UK rents rise in February

Published: March 11, 2008

Buy-to-let property investors in the UK benefited from increased rents in the last quarter.

That is according to the Association of Residential Letting Agents (Arla), which revealed that typical rent on a house increased by four per cent.

Rent paid on flats rose by two per cent in that time, with Arla citing increased demand for rented accommodation as a major factor behind the increases.

According to the organisation, rents in prime central London saw the largest increases, with nine per cent growth recorded in that time.

It means that a typical tenant in the region saw an additional £3,000 added to the average annual rent amount.

"We are seeing the beginning of the inevitable," commented Arla's heard of operations, Ian Potter.

"Whenever property prices soften or fall, rental demand, rents and yields all increase. As we begin a year of uncertainty in the sales market, it is inevitable that our member letting agents should report that they have more tenants than properties available for them," he added.

Arla also highlighted that increased immigration has helped to boost the UK buy-to-let property market.