Buy to let rents are still rising despite falling tenant incomes, according to the latest survey by landlord insurers Homelet.
Average rents across the country increased 2.6% from February to £764 a month in March, but London rents surged ahead of the rest to hit £1,156 a month.
While rents carried on climbing, tenant wages slipped back 1.2% outside London and collapsed by 3.5% in London.
"Tenant incomes appear to be rising at a much lower rate than they were 12 months ago. As economic uncertainly continues it’s likely that incomes could remain flat for many tenants in 2012, especially those with public sector jobs,” said managing director Ian Fraser.
“With inflation remaining high and average tenant incomes not growing at a proportional rate to rents, tenants budgets will continue to be stretched.
"Traditionally rents rise in the run up to September, when more high yield student properties go on to the market.
"The level of affordability for rental property varies for each region of the UK. While sharing property, particularly in the capital, helps to ease the financial pressures that tenants are facing, it’s important to remember that tenants across the country are getting varying sizes and standards of property for their money.
“To ensure long term growth after the economy has recovered, the private rented sector has to offer value for money, and while demand is high, it’s important that the quality of rental stock does not deteriorate."
