Rent prices continued to rise below the rate of inflation in
most UK regions during November, according to the latest report from Your Move.
The estate agent found that the average UK rent price rose
by 1.8% in the year to November 2018, to hit £864 per month. This compares to a
current inflation rate of 2.3%.
The greatest increase of the month was in the South West, at
an average of 4.3%, taking rents to £701 a month, followed by 1.9% growth in
the East Midlands, which took the average value to £663.
Rent prices in the East of England and London fell by an
average of 1.1% and 0.9% respectively over the same period.
Private tenants in the East of England paid £881 per month
on average in November, but those in the capital are still paying the most, at
Your Move also found that landlords can now earn annual
rental yields of 5% in the North East and 4.8% in the North West, due to low
house prices and large student populations, which are resulting in good rent
prices, meaning solid yields and few void periods for landlords.
Landlords in eight of the ten surveyed regions saw their
yields remain firm between October and November.
The East of England and East Midlands both saw a marginal
decline in yields over the month, with the former falling from 3.7% to 3.6%,
while, in the latter, the typical return dropped from 4.3% to 4.2%.
London continued to record the smallest percentage returns,
at an average of 3.2% during November. Across all of England and Wales, the
average rental yield was 4.3% in the month – the same as in October.
Martyn Alderton, the National Lettings Director of Your Move, says: “Properties in the
north appear to offer high percentage returns to property investors and,
as a result, they are attracting interest even more.
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.”
on: “As the London market continues to gently slow down, other regions are
coming to the fore and proving attractive to investors.
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.”
Move’s figures also reveal that the proportion of tenancies in rent arrears
fell from 8.6% in October to 8.1% in November.