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Average rent is now '712 per month'

By Helen Gradwell

22 June2021

A rented flat Letting agents have said that the average rent being paid by private tenants has risen to 712 a month. It was the second monthly increase in a row, according to the BBC - meaning that average rents are back to where they were in January.

Rents are now 2.3% higher than they were a year ago, and they are growing most quickly in the South East and London. The figures were compiled by a letting agency, LSL Property Services.

David Newnes of LSL commented that: "Historically high rents and rock-bottom savings rates are hampering attempts to save for the larger deposits banks now require.

"In turn, fewer tenants are able to leave the sector, and the strong tenant competition is pushing up rents as a result, making saving for a deposit harder still."

A spokesperson from Think Money added that: "Though rent going up month on month is simply a mild annoyance for some, for people with very little leeway in their budget it can be a 'tipping point'.

"If you're struggling, consider paring down your budget to the essentials - sacrificing 'luxuries' for a while - and saving whatever is left over so you can put it towards a mortgage, or perhaps an emergency fund. If you've got debts, focus on 'overpaying' them so you can clear them more quickly.

"Of course, if you've already reduced your budget to the bare essentials and you still have nothing left over after your essential costs - or you're already trying to clear unsecured debts - rent increases could push your finances to the limit. In this case, it's important to seek expert debt advice to see the best way to resolve your situation.

"If you're already using a debt solution, for example a debt management plan, it will be tailored to fit around your essential costs. If your essential costs increase (for example a rent increase), you should inform whoever is running your debt solution. They may be able to negotiate with your lenders so that your payment plan would accommodate these increased costs."

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Tags: debt, rent, property, living cost, BBC, mortgage, poverty, economy, interest rates

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