The latest Your Move buy-to-let index for England & Wales shows that the North West saw the fastest level of rental growth in the year to September.
According to the index, most areas of England and Wales experienced rental price growth over the last year. The average rent charged to tenants was £843 in September, on a seasonally adjusted basis, up from £841 in August and up 3.2 per cent from September 2016.
Rents across the North West rose by 3.6 per cent to £633 in September, the fastest level of growth among the areas surveyed. At the other end of the spectrum, prices in the South West dropped by 2.2 per cent and by 0.3 per cent in the North East, the only two areas to post an annual decline in rental costs.
London rents remain the highest in the country at an average of £1,280. However, those prices have fallen by 0.1 per cent month-on-month.
Yields achieved by Landlords across England and Wales in September remained broadly similar to last month, according to the study. The South East was the only region to see returns fall month-on-month, with the average landlord receiving a return of 3.3 per cent in September versus 3.4 per cent a month ago. All other regions offered the same yields as in August but are down compared to last year.
Across all surveyed areas, the average yield in England and Wales remained at 4.4 per cent for a sixth successive month. But yields remain lower than a year ago. In September 2016 the average return was 4.8 per cent.
Your Move and Reeds Rain national lettings director Martyn Alderton says:
“Once again the strongest rent growth was found in the areas away from London and the South East. As activity in the capital slows, prices and activity have risen in the north.
“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.”