Most areas of England and Wales have seen rental price growth over the past 12 months, according to the latest Your Move England & Wales Buy to Let Index.
On a non-seasonally adjusted basis, the average rent charged to tenants was £938 per calendar month (pcm) in September, while on a seasonally adjusted basis, the average rent was £843pcm last month, higher than the £841pcm recorded a month earlier and 3.2% up on the corresponding period last year.
On an annual basis, the North West of England is home to the fastest rising rents, having increased by an average of 3.6% to hit an average of £633pcm, followed by the East Midlands where prices are up 3.4% to £646pcm, while the East of England completed the top three with prices having jumped by 2.9% in the 12 months to September to hit an average of £880pcm.
By contrast, prices in the South West have fallen by 2.2% and in the North East they have dropped by 0.3%. These were the only two regions to post a year-on-year decline, Your Move found.
Unsurprisingly, London remained home to the highest rents in the country, at an average of £1,280pcm during September. However, this headline figure continues to mask vast differences across the capital.
The typical yield across England and Wales remained at 4.4% in September. But this is down on the 4.8% recorded a year earlier.
Properties located in the North East enjoyed the biggest yields. In this region the average return was 5.1% last month, while in the North West it was 5%. These were the only two areas to see yields above the 5% mark in September.
Martyn Alderton, national lettings director for letting agents Your Move and Reeds Rain, said: “Once again the strongest rent growth was found in the areas away rom London and the South East. As activity in the capital slows, prices and activity have risen in the north.
“There was a stellar performance in the North West, with rents increasing by 3.6% over the year and landlords seeing a high yieldrate of 5%.”
“Yield levels have started to stabilise across surveyed areas after being squeezed at the start of the year. This is good news for landlords and demonstrates the resilience of the sector.”