Rents soar as mortgages out of reach

Landlords hiked rents for the eighth consecutive month during September to an average 689 a month, says to LSL Property Services.

The cost of renting a home is now 3.1 per cent higher than it was last year and above the previous all-time high reached in August 2008.

The steep rise is being driven by soaring demand as first-time buyers find it harder to buy a home or find a mortgage.

But the supply of rental homes is failing to meet demand, as landlords face difficulties getting a mortgage.

David Newnes, estate agency managing director of LSL Property Services, said: “Landlords have seen tenant demand continue to hit new heights. The mortgage market remains tight and many buyers simply cannot get the finance to get a foot on the property ladder.”