The average rental price in Wales and England has risen over the past 12 months at a rate of 0.4 per cent per month. This now means that the average rent pcm (per calendar month) rose in February 2019 to £861, the latest research from Your Move has shown.
The study from the UK estate and letting agent chain concluded that rental prices in the South West region of England have continued to exceed all other areas. Rental prices in the area have increased by around 4 per cent, and have now reached an average price of £703 per calendar month.
The wealth contained within the South West region is apparent, as many landlords expand their horizons beyond London for lower purchase prices for properties and higher yields. Bristol and other cities located in the South West of England have steadily boomed in popularity, with this rise in demand causing rent prices to rise.
Your Move’s national lettings director, Martyn Alderton, explained that tenants have been attracted to Bristol primarily due to its extensive job prospects, as well as the city’s vibrant culture and arts scene. This has also been followed by an expansion of build to rent schemes in Bristol, which has increased demand for property, as well as average rental prices, across the South West region.
Other regions which have benefited from the focus being moved away from London include the West Midlands region, where average rental prices increased by 3.1 per cent, and the Yorkshire and Humber area, where rental prices rose by 2.1 per cent. In Yorkshire, the average rental price is now at £588, while in the West Midlands rental prices have now reached an average figure of £636.
Yorkshire is now the second cheapest region to rent property in, narrowly beating the North East of England, where the average rental price is £540 per calendar month. This follows a trend of a 1 per cent year-on-year increase.
All regions involved in the survey experienced increases in rent prices, with the exception of the East of England and London, where the average rental price fell to £878 pcm and £1260 pcm respectively.
Property inventory software has helped letting agents manage properties efficiently on the behalf of landlords. When analysing rental returns across the UK, it is clear to see why so many landlords are keen to invest in the northern regions of England for their property portfolio. With high yields which continue to outperform returns in the Southern areas, the North continues to appeal to many investors.
According to research from Your Move, the North East saw average returns of 5 per cent during February, followed closely by the North West region at 4.8 per cent.
Landlords in London experienced the smallest returns, with the average property in the city yielding 3.2 per cent. However, on an absolute basis, returns seen in London were far higher than other regions in the UK, due to the high price of property in the capital. The average yield across Wales and England stood at 4.3 per cent, a decrease from 4.4 per cent in 2018. Rental returns in every region in the UK have continued to remain strong, resulting in solid yields for landlords.
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