The average rent in United Kingdom is increased to 2.3 percent, about 676 pound than the previous year. This increase follows of fourteen percent in June. Now rents are just twelve pounds per month, which was more two years ago. In July, due to the increase in the rent rates, the average profit was 4.9 percent.

LSL Property Services plc, Estate Agency Managing Director, David Newnes said that the rents are still in demand with the increased property prices made in the previous year. Twelve months ago, the improvement in the prices caused a departure of the accidental landowners from the market, which resulted in the increase in the supply of rental property. Even though the property prices have decreased, landowners are enjoying the benefits of the constrained supply and the increasing profits have reinstated an improved balance to the dynamics of the property investment.

He added that they don’t expect rent rates to drop any time soon. With the increase in the prices more than the MPC’s target, the interest rates could only go one way to the north. When the prices increase then several landowners has to pay more monthly mortgage repayments and many of tem have to increase their property rents in order to cover the difference.

Tenant mortgages were in their good shape in at least two years, with rearages decreasing to only 9.2 percent of all rent across the United Kingdom. This was a drop from 11.2 percent at the end of the year, and it is the lowest level since the LSL Property Services plc started compiling the figures in the year 2008. In the month of July 212 million pounds of rent was not paid- a significant fall from its peak of 361 pounds in August, 2008.