By The average rent prices recorded in England and Wales have increased by 2.2 per cent in the past 12 months, according to Your Move’s 2018 England and Wales Rental Tracker report.
The average monthly rent across England and Wales was recorded at £861, which was an increase of 2.3 per cent. However; this figure is seasonally adjusted and the September average rents were virtually flat when compared to the average rent recorded in August this year.
In September, across England and Wales, non-seasonally adjusted average rents were recorded at £944 the new data revealed.
The strongest annual rent price growth from September 2017 to 2018 was recorded in the South West of England, as average rent prices rose by 4.3 per cent at £686 per month. This was closely followed by the East Midlands that saw an increase in annual rent price of 2.4 per cent resulting in an average rent of £656.
The South East of England also performed well with an annual rent price increase of 1.8 per cent, which pushed the average rent to £895, according to Your Move data for September.
The average annual rent growth fell in August 2018 for the North East and Wales, however, in September there was a marked increase in average rent prices of 0.3 per cent as they climbed to £588.
The North East of England remained the most affordable area to rent as the average annual rent growth witnessed an increase of just 0.2 per cent, which has pushed average rent prices to £535.
The average rent prices fell in London by 1.3 per cent in September 2018 over the last year, but in spite of this, the average price of rent recorded in the capital came to £1,271 per cent, making London the most expensive area to rent a property in the UK according to the recent data.
The average rents recorded in London were split across London’s underground zones. The highest average rent was recorded in zone two at £2,012.76, followed by zone three at £1,466.67 and zone three at £1,377.31. The London underground zone with the lowest recorded average monthly rent was zone six at £1,229.69, according to September’s data.
The West Midlands and the South West of England remained the most stable and were the best performing regions on a month by month basis in the year to date, as both regions saw an increase in the average annual rent growth of 0.4 per cent between August and September 2018, according to the Your Move data.
One of the explanations for this increase in the average rents across England and Wales in September 2018 was attributed to the start of the university academic year, which on a seasonal basis created an increase in the demand for private rented properties.
The seasonal demand for private rented accommodation reached its peak in September. Martyn Alderton, national lettings director at Your Move, commented: “Students up and down the country are beginning the return to their universities. Yet far from the outdated stereotypes of ropey student digs, many young people are able to access top quality student accommodation in their place of study.
“The growth of the student rental market has been a boon for landlords who have invested in good quality properties. Yet the number of living options for students means that there is real competition, with landlords having to ensure quality is high to attract the best tenants.”
Landlords benefit from an increase in average annual rent growth
Of the 10 regions across England and Wales that were measured, the greatest rental yields remained stable between August to September 2018 and property investment returns remained competitive throughout the course of September, according to the recent data from Your Move.
The areas with the best rental yields were recorded in the North of England when compared to the South of the country, with a higher percentage in returns on investment. The North East received an annual rental yield of 5 per cent in the year to date whereas, in the North West, it was recorded at 4.8 per cent.
The region with the smallest average rental yield was London with just 3.2 per cent for the capital’s investors. However, when the average rental yields for investment properties in both England and Wales were combined, the total figure remained at 4.4 per cent.
There was a small increase in the number of rental arrears in the months of August and September, although the general outlook for the average UK renter remained strong according to the Your Move tenant arrears report.
The number of rental arrears between August and September increased slightly. Martyn Alderton, the national lettings director of Your Move, commented: “The focus of the rental market has now well and truly shifted away from London. Prices in other regions are growing much faster and offering higher percentage returns for landlords.
“The South West was the star region this month, posting faster rent growth than anywhere else. Investors in the North East and North West continued to enjoy higher percentage returns than other areas, with some areas looking at a 7.5 per cent yield…All in all; there are positives across much of England and Wales, including the fact that tenant arrears are falling.”
The survey discovered that 10.1 per cent of all tenancies were in rent arrears, which is a rise of 9.7 per cent from August, however; this proportion of tenants still remains below the recent and all-time high recorded amount by Your Move. The highest level of tenants in rent arrears recorded was 13.7 per cent in July 2017.
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