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Strong end to 2016 for the rental market
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
After a turbulent year, average UK rents ended 2016 greater than they started it, according to the latest Your Move England & Wales Buy to Let Index.
The Index reveals that the average property was let for £811per month during December. In January 2016, the average rent stood at £790.
Eastern Rises
Rents rose across most regions during last year, with the East of England seeing the most prominent.
However, demand for properties in London has fallen, with more would-be renters looking outside of the capital for options. The East saw rental rises of 6.1% over the year, closely followed by the South East, where average rent has grown by 4.4% since December 2015 to hit £877 per month.
Only two regions saw average rents fall on a yearly basis during 2016. In the South West, homes let for an average of £660 per month-1.4% lower than twelve months previously.
The North East saw a less prominent fall, with prices down by 0.2% year-on-year. This region remains the cheapest place to rent a property in the whole of England and Wales, with average totals of £543 per calendar month.
At the other end of the scale, London remained the most expensive place in which to rent. The typical property in the capital commanded a rent of £1,291 in December.
Strong end to 2016 for the rental market
Strong Finish
Valerie Bannister, letting director at Your Move, noted: ‘The rental market in England and Wales has ended the year strongly, with all key indicators looking positive. Rents ended the year higher than they started in most areas, yet tenant arrears have remained broadly at the same level.’[1]
It comes as little surprise to learn that London offered the lowest rental yields. Homes in the capital returned 3.3% on investment during December.
In contrast, landlords in the North East saw the strongest yields, with the average property returning 5.3% in the same month.
Concluding, Bannister added: ‘Rents ended the year higher than they started in most areas, yet tenant arrears have remained broadly at the same level.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/rental-market-in-england-and-wales-ended-2016-strongly-latest-index-shows
