Rent increases slow but more tenants fall behind on payments | Money | guardian.co.uk

Rent increases slow but more tenants fall behind on payments | Money | guardian.co.uk

Rent rises slowed to their lowest rate in eight months in October but the number of tenants falling behind on payments increased, according to research from LSL Property Services.

The latest monthly buy-to-let index from the lettings agent showed the average rent in England and Wales rose by 0.2% in October, to £720 a month, the lowest increase since February.

However, the headline figure disguised big variations around the regions. In the south-east and east of England, rents were up by 1.5% and 0.8% respectively compared to September, but in the north-east and south-west they dropped by 1.4%.

In London the index puts the average rent at £1,030, unchanged from September, but 5.7% higher than in October last year.

Despite the slowdown in rent rises, LSL said tenant finances had "taken a turn for the worse" in October. At the end of the month, 10.1% of rent was late or unpaid, compared with 8.6% at the end of September. However, this was roughly in line with the previous 12 months' average of 10.3%.

"Rents are still heading northwards, but tenants may take comfort from the fact they did not climb at such a blistering pace in October," said David Newnes, director of LSL Property Services.