Rent increases slow down through 2013

Landlords might still be enjoying a boom - but rent rises have plateaued.

The latest Buy-to-Let Index from LSL Property Services showed that annual rent rises halved in 2013.

Average rents across England and Wales rose 1.5% in the past year, to stand at £745 per month in December.

This annual rise is half that of a year ago. By comparison, rents increased by 3.2% in the year to December 2012.

David Brown, commercial director of LSL Property Services, said: “Very gradually, the clouds are clearing for tenants. Households have suffered from the most painful recession in living memory, but it’s clear we’re now coming out the other side.

“By investing heavily in the supply of more homes to rent landlords have played a pivotal role.

"Now it remains for the rest of the economy to lift real earnings, and by so doing, lift even more households out of trouble. But prospects look good. Early indications show wage expectations are starting to look up – and general inflation is under control again.

"If this can take hold, more prosperous tenants will make for a more prosperous private rented sector in 2014."