Average rents rise as first-time buyers struggle to raise deposits | Money | guardian.co.uk

Average rents rise as first-time buyers struggle to raise deposits | Money | guardian.co.uk

The average rent rose by 0.4% in March as landlords enjoyed a surge in demand from would-be first-time buyers struggling to make a purchase, the LSL Property Services buy to let index has found.

The increase to about £685 a month marks the second month in a row that prices have risen. Rent is now 4.2% higher than this time last year and is at its most expensive since November 2010.

Landlords are benefitting from first-time buyers being forced to stay in rented accommodation as they struggle to save deposits. LSL says that despite higher loan-to-value mortgages coming on to the market, many young people simply cannot afford the average £25,000 deposits needed to get on the property ladder.