Rent rises below inflation while property investors head North
Rents continued to rise below the level of inflation in most UK regions in November, new data from Your Move shows.
UK rents were up 1.8 per cent annually in November 2018, to £864 per month, against a current inflation rate of 2.3 per cent.
The South West region saw price rise 4.3 per cent to £701, followed by a 1.9 per cent increase in the East Midlands to £663 per month.
Rents in the east of England and London fell by 1.1 per cent and 0.9 per cent respectively.
Tenants in the east of England are now paying £881 per month on average while those in the capital still pay the most at £1,263.
A Your Move report from last August shows how little the national picture has changed, despite growing uncertainty caused by the prospect of Brexit.
Simple Landlords Insurance reported the snapshot here.
Your Move added that landlords can now earn annual yields of 5 per cent in the north-east and 4.8 per cent in the north-west.
Martyn Alderton, national lettings director at Your Move, said: “Properties in the north appear to offer high percentage returns to property investors and, as a result, they are attracting interest even more.
“This strong appetite to buy has been accompanied by a rise in demand for rental properties, since the north is attracting many young professionals and families with its good transport links and job prospects.
“As the London market continues to gently slow down, other regions are coming to the fore and proving attractive to investors.
“In the South West there was also good news and rental prices increased faster than anywhere else. The region boasts both the up-and-coming city of Bristol and some of the most picturesque parts of the world in Devon and Cornwall.”