Rents stagnate across England and Wales, agency index reveals
Rents across England and Wales have not moved in the last 12 months, according to Your Move.
The agency says the typical rent is now £860 per calendar month, the same as last March and 0.1 per cent down month-on-month. On a non-seasonally adjusted basis, the average rent across England & Wales was £820 this month, down 1.0 per cent compared with March 2018.
However, this figure masks regional differences, as regions such as the East of England have seen prices fall by 2.0 per cent to £875 pcm while the South West is growing at 3.6 per cent annually and now stands at £701 pcm on average.
Other areas to post strong growth include the West Midlands, where prices grew by 3.3 per cent to reach £638, and in the Yorkshire and the Humber region, which has an average rent of £589 following a 2.3 per cent increase in the last 12 months.
Investor landlords in southern regions are now looking north for higher returns, as properties in northern areas continue to outstrip rival regions, Your Move found.
In the North East the typical property returned 5.0 per cent while in the North West that figure was 4.8 per cent. This contrasts with an average yield of just 3.2 per cent in London and 3.3 per cent in both the South East and South West.
Wales was the only area where yields dropped between February and March.
“Yields continue to perform strongly, with just one region offering lower returns this month than in February” according to Martyn Alderton, national lettings director at Your Move.
““We continue to see landlords in the south of England looking further a eld for their next rental opportunity, as northern properties deliver stronger yields and the growth of the urban rental market has created yield hotspots for private landlords in northern cities like Manchester and Liverpool” he continues.
“Universities in these major cities are attracting students from across the country while young professionals are also increasingly relocating to the North. The investment in infrastructure and culture, for example the relocation of the BBC and ITV to Manchester, has undoubtedly boosted the desirability of the city among this group” Alderton concludes.