Current demand for rentable properties, not the least of which is the demand of workers for rent in London flat, led to an noted increase in rent in 9 out of the 10 regions across England and Wales, hitting a national average of £904, according to the latest index.
Regions across the country are seeing such an increase in demand as tenant numbers rise, that supplies are unable to keep up, leading to an increase in rent, primarily concentrated in the East of England and the North West, as per the data from Your Move’s buy to let index.
Both regions saw their monthly rent increase by 3.2% in the 12 months preceding the August of 2017, to £876 and £631 for the East and North West, respectively. The South East wasn’t trailing that far behind with a 3% increase, bringing that area’s average to £882 per month.
The South West region was the only region to have recorded a decrease in rent prices, with the average rent in the area having dropped by 2.7% from the preceding year at £667. However, the North East still holds the lowest prices at £540 per month.
The capital continues to honour its reputation for expensive rent, with the highest average rents, clocking in at £1,282 per calendar month, varying based on location. This was a 1.5% increase from last year’s numbers.
On a monthly basis, rent levels were fairly level for all regions, with the South West, Yorkshire and The Humber recording the highest growth in one month at .4%, between July and August.
Landlords and investors in the North East region enjoyed the highest returns in the country, with yields averaging at 5% during August, in comparison with the capital’s 3.2%, the lowest. This number has also managed to remain steady throughout the time of 2017.
According to Richard Waind, Your Move’s Director, yields are experiencing a bit of a slow down, in spite of rising rents, due to a reduction in tenant enquiries following Brexit, which then led to a decrease in EU migration.
He states, however, that the August-September range is when activity is at it’s highest, and this, combined with the slow, but steady increase in new listings following the recent tax changes that affected landlords throughout the country meant that rent prices could continue to increase in the following months.