UK tenants are continuing to see their rents rise, according to a new report.
Data released by LSL Property Services showed rents rose by 0.1 per cent between April and May, but the body noted this pace of growth is slower than in previous months.
David Newnes, director of LSL, which owns lettings agents Your Move and Reeds Rains, stated rent levels are likely to depend on mortgage availability and how many people can therefore afford to buy a home for the first time.
"With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable – which will keep demand for rented accommodation high," he said.
LSL Property Services said the average rent was £737 a month, which it was noted by the company makes May the third highest level on record.
This report comes shortly after it was revealed by Nationwide's data that the typical UK home is now worth £167,912. Robert Gardner, chief economist, explained the UK's housing market is starting to gain momentum.
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