Rents up across England and Wales except in London and the North East

Michael Lloyd

December 23, 2017

The average rent in England and Wales increased by 2.3% over the year to November, with eight of the 10 regions seeing yearly price rises.

The Your Move England & Wales Buy-to-Let Index found that although prices in most areas rose, prices in London and the North East fell.

On a non-seasonally adjusted basis, the average rent was £896 per month across all of England and Wales. When looking on a seasonally adjusted basis, the average rent was £849 during November.

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Martyn Alderton, national lettings director for letting agents Your Move and Reeds Rain, said: “Prices in most areas of England and Wales have risen in the last 12 months, which shows the rental market in both nations is still growing.”

London remains the most expensive place to rent a property, but prices are falling in the capital city. In November the average property cost £1,275 per month, well ahead of the next closest region – the East of England on £891.

Prices in London have fallen 1.6% compared to November 2016.

Alderton added: “In London, rents have been trending downwards for more than a year as demand has fallen. However, there continues to be significant variations between different parts of the capital, depending on how close to the centre of the city a property is located.”

Rents in the East of England rose faster than anywhere else in England and Wales in the last year.

There was 3.8% growth in prices in the year to November, stronger than any other area surveyed. The average rent now stands at £891, compared to £858 a year ago.

The survey found strong price growth in the East Midlands, where rents rose 3.2% year-on-year to reach £651 per month.

Similarly in the North West the average rent is now £635, 3% higher than a year ago.

Alderton said: “The East of England continues to be the star performer. The average rent increased 3.8% in the last year, a stellar performance.

“The increase in popularity in the region can be attributed to the number of new jobs being created in Cambridge, as well as the popularity of commuter towns such as Luton and Southend.”

The North East remains the cheapest lace to rent a property in England and Wales, and saw prices decrease by 1.45% to £535.

While prices in all areas of London are higher than the national average, there is major variation depending on which are of the capital properties are located.

The average rental property in London Travelcard Zone 2 costs £1,839 while out in Zone 5 this falls to £1,093.

Across all of England and Wales, the average rent now stands at £849. This is 2.3% higher than November 2016 and 0.4% higher than last month.

Yield levels continue to stabilise across much of the country, with the average yield in England and Wales remaining at 4.4% this month. However, some regions did see the average return for landlords fall compared to October.

Property investors in the North East, North West and East Midlands all saw their returns shrink this month while the North East and North West continue to offer the best returns for landlords.

The average property in the North East had a yield of 5% in November 2017, just ahead of the North West which returned 4.9% to investors.

However, London continues to offer the smallest percentage returns, with the average rental property in the capital generating a yield of 3.2%, smaller than anywhere else in the survey.

Properties in both the South East and South West returned an average of 3.3% to landlords this month.

 

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