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TODAY'S OTHER NEWS

Rental market in England and Wales ended 2016 strongly, latest index shows

Despite a turbulent year average rents ended 2016 higher than they started it, the latest Your Move England & Wales Buy to Let Index has revealed.

The average property was let for £811 a month in December. By comparison, the average rent in January 2016 stood at £790.

Rents increased across most regions last year, with the East of England seeing rents rise faster than any other region.

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As demand for properties in London has slowed, many people have looked outside of the capital for options, with the East of England seeing strong rent rises across the year (6.1%), followed closely by the South East where the typical rent has grown 4.4% since December 2015 to reach an average of £877 per month.

Just two areas saw average rents fall on a yearly basis in 2016. In the South West, homes now let for £660 per month, 1.4% lower than 12 months ago, while the North East saw a smaller fall with prices down 0.2% on the year.

The North East remains the cheapest place to rent in England and Wales, with the average property on the market for £543, while in spite of a marginal decline between November and December 2016, London remains home to the highest rents in England and Wales.

The typical property in the capital let for £1,291 in December, some £4 less than November’s total of £1,295, Your Move found.

Valerie Bannister, letting director at Your Move, commented: "The rental market in England and Wales has ended the year strongly, with all key indicators looking positive."

London was the only region to see a fall in rents month-on-month as the rest of the country was either flat or saw rises.

Rents in the East of England grew 0.7% compared to November – the best performing area. This was followed by the South West (0.6%) and the East Midlands (0.5%).

Unsurprisingly, London was the region which offered the lowest rental yields, with homes in the capital returning 3.3% on their investment during December.

In contrast, landlords in the North East continue to enjoy the strongest yields. Across this region the typical property returned 5.3% in December, the same as in both October and November

Across England and Wales the typical return was 4.7% in December, which is below the average yield of 5.1% recorded in December 2015, as well as the 5% recorded at the half way point in June 2016.

Bannister added: “Rents ended the year higher than they started in most areas, yet tenant arrears have remained broadly at the same level.” 

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