The slow house market has seen a continued rise in the cost of renting accommodation – but is remaining relatively stable.

Renting a home in England and Wales has risen for the ninth consecutive month but the rate of increase has slowed, according to a national survey.

LSL Property Services, which owns big estate agencies such as Your Move and Reeds Rains, said the average rent for a house in England climbed to £720 a month in October.

But, they also say the 0.2% monthly increase was the smallest rise seen since February.

Frustrated first-time buyers continuing to rent and a shortage of rental property have led to rising costs, even in the despite the availability of new stocks.

On a regional basis, rental costs rose the most in the south-east (up 1.5%) and the east(up 0.8%) in October compared with September.

Over the last year, tenants in London have seen rents rise faster than in any other region.

However by comparison, rents fell by 1.4% in the north-east and south-west.

“The recent increases are likely to continue to level out in run up to Christmas – traditionally a slower time for the market,” said David Newnes, of LSL.

“Nevertheless, despite the slower rate of increase, the cost of renting is still rising annually at nearly twice the speed of the average salary and many tenants will need to dedicate a growing portion of their disposable income to the cost of accommodation over the next year.”

, director of flat and house share website, Spareroom.co.uk, said:

“With the economic climate unlikely to be much improved as we go into 2012, this supply-demand imbalance will worsen rather than improve, which could well put more upward pressure on rental prices.

“However, the one saving grace is that the last thing landlords want is empty properties, so they will have a responsibility not to price tenants out of the market.”

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