According to the latest report, rents in England and Wales continue to perform well. Average rents have increased by 0.5%, with the average monthly rent working out at £861 per calendar month.
The West Midlands stood out as the fastest growing area this month, with the average rent increasing to £641 per calendar month. The region has overtaken the South West, where the average rent had risen by 3.7% to £701 in the 12 months to April.
Rents in the North continue to go from strength-to-strength. The North West saw an impressive year-on-year increase of 2.3%, and Yorkshire and the Humber had an increase of 2.5%. The North also performed well in terms of yields with only the North East offering lower returns than it did in the previous month. This wasn’t the only good property-related news in the North West; according to the latest House Price Index from Rightmove, the region saw a monthly rise of 0.7% in house prices.
On the other end of the scale, London has seen the average rent decrease slightly, with prices in the capital dropped by 1.1% but remained true to form as the most expensive place to rent in the UK, with the average rent standing at £1,262 pcm. However, the region that struggled the most was the East of England which saw a decline of 2.2% in average rents in the last 12 months. The South of England also achieved considerably lower average yields.
The impressive performance of the Northern rental market is credited to the North seeing a complete overhaul in its economy. Numerous corporations have relocated to the North and, as a result of this, thousands of graduates and young professionals are moving to the north to take advantage of the wealth of opportunities available. It’s for this reason that investors in Southern regions continue to look North for their next investment.
In response to the latest figures, Martyn Alderton, the national lettings director at Your Move, said: “Across England and Wales there are those areas which are seeing rents rise, and those where they are flat or falling.
“It is the areas which have seen periods of strong growth in recent years, such as London and the East of England, which have dropped back slightly.
“Other areas of the country, including the West Midlands, are starting to catch up and are growing at an attractive rate.
“Regardless of the short-term rent fluctuations the property market remains a great place to invest, with landlords also enjoying stable returns compared to last month.”
These figures should be very encouraging for those who are looking to invest in buy to let property, especially since the market has performed well this year, despite potential obstacles like Brexit and changes in legislation for landlords.
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