Average rents rise in England and Wales
Average rents across England and Wales increased by 2.2 per cent in the 12 months to October, according to new data from Your Move.
The latest figures show that landlords collect £861 per calendar month (pcm), on average, and follow data from Rightmove suggesting average rents outside London have surpassed £800 pcm.
Seven of ten regions analysed by Your Move’s rental tracker saw rents rise year-on-year, led by gains in the South West of England where prices have grown by 4.4 per cent in the last 12 months, supported by a combination of strong local economic growth and high demand for housing.
But prices fell 0.9 per cent in London and 0.4 per cent in the East of England, while rents in Wales remained flat year-on-year.
The new data reveals that the capital is still the most expensive place to rent, at an average of £1,271pcm, while the cheapest place to rent is the North East at an average of £535pcm.
On a monthly basis, the North East and West Midlands saw the biggest rent increase. Both regions saw average rents rise by 0.4 per cent between September and October.
The average investor in the North East enjoyed a rental return of 5 per cent in the year to October while in the North West this figure was 4.8 per cent.
Across all of England and Wales, landlords enjoyed an average yield of 4.3 per cent in October, the same as in September.
Martyn Alderton, National Lettings Director at Your Move, said: “The focus of the rental market has now well and truly shifted away from London. Prices in other regions are growing much faster and offering higher percentage returns for landlords.
“The South West was the star region this month, posting faster rent growth than anywhere else.
“Investors in the North East and North West continued to enjoy higher percentage returns than other areas, with some areas looking at a 7.5 per cent yield.”