Rents rose faster in the East Midlands and the South West than anywhere else in England and Wales during the 12 months to May, the data from the Your Move rental tracker report shows.
Average rents in the two regions rose by 3% year on year to £656 and £682 while across all regions, the average seasonally adjusted monthly rent now stands at £861. But they fell in London by 0.3% although the capital is still the most expensive place to rent a home at £1,273 per month.
Rents also fell in Wales, down 2% to £587 and by 1.6% in the North East to an average of £536 per month.
Month on month rents fell in a number of regions, down by 0.37% in Wales, by 0.19% in London, 0.11% in the West Midlands, 0.03% in the East of England and by 0.01% in the North East.
While landlords in most areas of the country saw yields stabilise between April and May, yields fell marginally in Wales from 4.7% to 4.6% and in the North West from 4.9% to 4.8%.
Northern regions continue to offer the highest percentage returns. In the North East the average yield was 5% and in the North West it was 4.8%. This compares 3.2% in London and an average across England and Wales of 4.17%.
‘Landlords will be encouraged to see strong rent growth and solid yields in most areas of England and Wales. However, for renters the East Midlands and South West have seen prices grow faster than anywhere else in the UK,’ said Martyn Alderton, national lettings director at Your Move.
‘Meanwhile landlords in most of the nine regions surveyed have seen their returns remain steady this month, contrasting the recent declines we have seen,’ he added.
