Most areas of England and Wales have seen rent price growth over the past 12 months, with the North West seeing the fastest rising rents in the year to September, according to the latest Buy to Let Index for England and Wales from Your Move.
On a non-seasonally adjusted basis, the average rent charged to tenants was £938 per month in September. On a seasonally adjusted basis, the average rent price was £843 per month, which is higher than the £841 recorded in August and 3.2% up on the same month last year.
On an annual basis, the North West experienced the fastest rising rents, having increased by an average of 3.6% to reach £633 per month, followed by the East Midlands, where prices were up by 3.4% to £646, while the East of England completed the top three, with prices having jumped by 2.9% in the year to September to reach an average of £880.
By contrast, rents in the South West have dropped by an average of 2.2%, while the North East has seen prices decline by 0.3%. These were the only two regions to record a year-on-year decrease in September.
Unsurprisingly, London remained home to the highest rents in the country in September, at an average of £1,280 per month. However, this headline figure continues to mask vast differences across the capital.
The typical rental yield for landlords remained at 4.4% in September, which is down on the 4.8% recorded in the same month last year.
Properties in the North East enjoyed the highest yields, at an average of 5.1%. In the North West, the average return was 5.0%. These were the only two regions to record yields above the 5% mark in September.
The National Lettings Director for Your Move, Martyn Alderton, comments on the report: “Once again, the strongest rent growth was found in the areas away rom London and the South East. As activity in the capital slows, prices and activity have risen in the north.
“There was a stellar performance in the North West, with rents increasing by 3.6% over the year and landlords seeing a high yield rate of 5.0%.”
He adds: “Yield levels have started to stabilise across surveyed areas after being squeezed at the start of the year. This is good news for landlords and demonstrates the resilience of the sector.”