East of England leads rent rise rebalance across England and Wales
Thursday 25 January 2018
Average rents in England and Wales increased by 2.3 per cent to £850 a month in 2017 with the East of England showing the highest growth at 3.3 per cent, the latest index shows.
Meanwhile, the North East offers the cheapest rents at £534, but still has the best yields for landlords at 5 per cent, while returns in Wales improved to 4.8 per cent.
Rents in London were down 1.4 per cent, year on year, to an average of £1,274, according to the Your Move index, but the report suggests that tenants in the capital are looking further afield.
Across the whole of England and Wales, the average yield was 4.4 per cent in December 2017.
Martyn Alderton, national lettings director for letting agents Your Move and Reeds Rains, said: “The rental market in England and Wales ended 2017 on a positive note for landlords, with rents, overall, up 2.3 per cent compared to a year ago.
“However, behind these figures lie fluctuations particularly in relation to the fall in average rents in London and strong growth in average rents in other regions.
“In many ways, the rebalancing of the rental market across the country should be seen as a good thing as demand spreads to other areas and keeps the market robust.
“London still remains one of the most popular and expensive places to rent, yet we are now seeing strong growth in demand for rental properties in the regions around the capital,” he added.
The East of England, with an average rent of £893, is now the second most expensive place to rent after London, and Your Move agents suggest the region is becoming increasingly popular with tenants migrating to towns like Peterborough and Norwich.
Strong rental price growth was also seen in the East Midlands with an annual rise of 2.8 per cent to an average of £651, while in the North West rents grew 2.7 per cent to £635 per calendar month.
The North East and the North West continue to boast the highest yields, reaching 5 per cent and 4.8 per cent respectively in December 2017 while London landlords have the smallest percentage yields at 3.2 per cent.
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