Lettings data indicate steady rise in cost of renting | Money | guardian.co.uk

Lettings data indicate steady rise in cost of renting | Money | guardian.co.uk

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%.