The number of rents in arrears decreased in February despite a hike in rents, according to new figures out yesterday, in a sign that households are slightly better off.
The monthly lettings index by estate agents Countrywide showed that average rent in the UK for newly let properties rose by 1.7 per cent to £876pcm in the year to February, while arrears fell in all regions.
Greater London saw the largest increase in rent, up 8.4 per cent to £1,251 per month while the south east saw the greatest decrease, down 8.1 per cent. Countrywide said this was due to a fall in demand for rental properties in the region, as more tenants move out of the private rented sector and bought their own home.
Two- and three-bedroom homes recorded the largest rise in rent, increasing 4.5 per cent and three per cent respectively year-on-year.
Average UK rents, including renewed tenancies, rose 2.2 per cent year-on-year.