Rental yields picked up in August, rebuffing suggestions that Brexit has caused a slump in the UK’s housing market, YourMove’s rental index has found.
The average cost of rental properties across the country stands at £887, with London, the South East and the North East seeing growth in particular.
Rents in August 2016 rose by 8.7% compared to August 2015. In contrast average rents shrank by 2.4% in June.
Rents in the London grew by 6.9% in the last 12 months to reach an all-time high level of £1,391, while other regions saw a strong performance. In the North East, rents increased by 12.3% over the same time period and properties now let for an average of £583 per month.
Yorkshire and the Humber (£580 per month) is the cheapest place to rent in England and is just 42% of the cost of renting in London.
Adrian Gill, director of YourMove, said:“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.”