Rental prices 'rise in May'

Posted: 18 Jun 2010 11:54:51 GMT

Rent prices increased during May in the build up to a possible rise in capital gains tax (CGT), figures have shown.

Data from LSL Property Services found the average rent in the UK to have risen for a fourth consecutive month to £667.

It was an increase of 0.5 per cent from April and the level is now 2.7 per cent higher than a year ago.

The West Midlands had a rise of 2.1 per cent and rent in London went up by one per cent.

David Brown, commercial director of LSL Property Services, said: "The fundamentals of sound property investment - tenant demand, yield and rental income - are in place for the buy-to-let recovery to continue apace.

However, he was wary that the possible rise in CGT, which could be announced in next week's emergency Budget, may affect the recovery.

Landlords welcomed the government's announcement earlier this week that it aims to end shared housing planning regulations.


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