Rents in England and Wales up by 1.6 per cent in June

Rents in England and Wales up by 1.6 per cent in June
31/07/2017 , by , in INTERNATIONAL

Private sector rents in England and Wales increased by 1.6% between May and June to reach an average of £827 per calendar month, some 2.1% higher than a year ago, the latest index shows.

All regions saw rents rise or remain level month on month with the biggest increase in the North West and the West Midlands, up 0.3% to £629 and £609 respectively, according to the Your Move buy to let index.

In the East Midlands, the South East, and Yorkshire and the Humber, rents were up 0.2% while on a yearly basis Wales recorded faster rent growth than anywhere else with growth of 7.2%.

The East of England recorded annual growth of 3.6%, taking average rents to £872 a month but the South West saw the biggest decline in rents, down 2.6% to an average of £664.

London also saw rents fall year on year by 1% to £1,277, making it the most expensive place to rent a home. However there remains a significant disparity within London, from £944 to £1,629 depending on location.

The average yield for landlords improved in both the North East and the North West regions, but by a small margin to 5.23% and 5.01% respectively and the majority of regions saw returns fall year on year with the biggest fall in yields in the East Midlands and the East of England.

‘Compared to May, rental prices have held firm or continued to increase, suggesting that recent political turmoil has had little immediate impact on renters. The squeezing of yields in recent times may also be showing signs of ending as landlord returns remain relatively stable with the North East and North West, in particular, performing well,’ said Richard Waind, Your Move director.

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