Rent costs rising ‘faster than ever’

The costs associated with renting property in the UK have been rising at their fastest rate on record in recent months, according to a new report.

A study by Paragon has found that the cost of renting increased by as much as 19 per cent over the course of last year, which for many people could mean further debt management struggles.

The rising costs are being driven by the relative lack of property purchases being made around the country and Paragon has noted that rents increased by around eight per cent in the final quarter of 2007 alone.

Paragon’s managing director for mortgages John Heron commented: “There’s been fall in consumer confidence in recent months, but this appears to be to the benefit of established landlords.”

The extent of the UK’s debt management woes is believed to have contributed to a fall in the pace of growth of mortgage lending activity in recent months, as reported by the British Bankers’ Association this week.