LONDON, August 22, 2012 /PRNewswire/ --
Leading landlord insurance website, PropertyQuoteDirect have noted rental prices have soared across England and Wales for the fourth month in a row in July, hitting new highs in London for three consecutive months, with "fierce competition" from frustrated would-be home buyers continuing as the market enters its summer peak.
With an ever increasing need for good landlord insurance, PropertyQuoteDirect has learnt that the typical rent in England and Wales rose by 1pc to £725 in July, surpassing a previous high of £720 per calendar month recorded in October last year.
This meant that the pace of annual rental inflation has also increased, climbing to 2.9pc from 2.4pc in June. Rents are climbing at their fastest on an annual basis in London, rising by 4.8pc to also reach a new high of £1,057.
As people have struggled to get on the property ladder, because they haven't the means to raise a large enough deposit or meet the lenders' ever tightening borrowing criteria, demand in the private rental sector has rocketed.
PropertyQuoteDirect have found that whilst several mortgage lenders have cut some of their rates to increase competition recently, much of this has been aimed at clients who pose less "risk", possessing larger amounts of equity.
Amid the fragile economy, borrowers with smaller deposits are expected to have a tougher time taking out a deal amid the uncertain economy.
Joe de Vries of PropertyQuoteDirect, explains: "The queue for first-time buyers in the private rental sector has shown no sign of clearing this summer - rather it is still increasing. With the banks still reluctant to lend to those without substantial deposits, demand for rented accommodation will only go one way long-term - moving further upwards momentum for rents."
Joe went on to add: "The rental market is now peaking for the summer as students who've now graduated and those who've landed new jobs start their search for new accommodation. With good rental accommodation at a premium and more tenants on the move, landlords will only justify increasing rental prices even higher."
PropertyQuoteDirect comes under the Bedford Insurance umbrella, and they offer bespoke landlord insurance packages. If you would like to request a quote, simply visit their website.
Joe de Vries