Rents in England and Wales soared to record highs in August, as a result of a surge in student check-ins. Average rents now stand at £887, according to the latest Your Move England .
This figure is the highest recorded by the firm, with the pre-referendum slowdown all but over. There was definitely a seasonal influence driving the rents upwards, caused by a rise in students returning to their studies.
In particular, this rise has been noticeable in London, the South East and the North East.
August rents were 8.7% greater than those seen at the same period in 2016. This is in contrast to June, when average rents fell by 2.4%.
The Index also found that it is on average 30% cheaper to rent in the South East than in London.
While the capital has long been the catalyst of rent increases in the UK, other regions are now starting to surpass London. Rents in the capital rose by 6.9% year-on-year to August, to hit an all time level of £1,391.
However, this performance was bettered in the South East, with data suggesting that students drove this record high. With this said, it is unlikely that rents will continue to rise at the same level until the end of the year.
Surprisingly, the North East also saw more increased rental growth than the capital. Rents in this region were up by 12.3% year-on-year.
Student check-ins drive rents to record highs
Adrian Gill, Director of lettings agents Your Move, noted: ‘The rental market appears to have left any uncertainty about the market behind with prices across England and Wales again reaching record highs. London continues to be home to the highest rents but other areas such as the North East and South East are witnessing even stronger levels of growth over the year-demonstrating the seasonal impact of the student market.’
‘Yields have picked up following a gentle decline in recent months, something which landlords will no doubt watch with interest over the next couple of months,’ he added.