Overall average rents in the private sector in England and Wales have been flat in the 12 months to July 2018 and increased by just 0.03% month on month to £861, the latest index shows.
Rents in the South West of England grew faster than anywhere else, up by 3.7% year on year to £686 per calendar month, according to the Your Move rental tracker index.
Prices in the East Midlands rose by 2.9% year on year to reach an average of £656 while in the East of England the average rent grew to £890, a 1.9% annual increase while rents fell in – London, Wales and the North East.
The North East remains the cheapest place to rent a property in England and Wales at £535 with the average monthly rent falling by 1.3%, the biggest drop recorded in this survey. In Wales prices dropped by 0.9% in the year to July, with the average rent now £588 per month.
When looking at London Travelcard Zones, those in the more central areas of Zone 2 pay an average of £1,725 a month while those in the suburbs typically pay far less. The average rent in Zone 5 is £1,108 a month while in Zone 6 this figure is £1,164.
On a monthly basis, the South West was also the region to see rents rise faster than anywhere else, up 0.7% between June and July.
Across England and Wales the average yield was 4.4% in July, unchanged from June. Northern regions still offer the highest yields for landlords. An average investor in the North East saw an annual yield of 5% in the year to July and in the North West it was 4.8% and 4.6% in Wales.
London continued to offer the smallest percentage returns at 3.2% although, as prices in the capital tend to be much higher than Northern areas, the index report points out that the absolute returns here can be far greater.
‘One benefit of the slowdown in the London rental market has been that it now shines the spotlight on other areas of England and Wales. The South West of England has been the standout region in the last year, with rents rising consistently in areas of high demand,’ said Martyn Alderton, national lettings director at Your Move.
‘Prices in the East Midlands and East of England have also increased strongly, showing there is demand for rental properties outside of London and the South East. London continues to have the highest rents, but there are still good pockets of value around the capital, particularly in areas further from the city centre,’ he added.
