Rental values across the residential property market in England and Wales held firm between May and June despite the uncertainty caused by the general election, according to the latest Your Move England & Wales Buy to Let Index.
This research, which is created and reviewed in partnership with Cebr, reveals that the average rent across England and Wales increased by 1.6% between May and June to reach an average of £827 per calendar month. This figure is also 2.1% higher than a year ago.
Rental price growth was led by the North West and West Midlands where prices increased by 0.3% in June to reach an average of £629 and £609 respectively.
On an annual basis, Wales saw faster rent growth than anywhere else, with prices increasing by 7.2% in the last 12 months, although this area still remains one of the cheaper places to rent property, at an average of £599pcm.
The next strongest growth was recorded in the East of England where the average property was let for £872pcm, up 3.6% year-on-year.
Just two regions saw prices fall compared to last year, with the South West seeing the biggest decline in rents, with the average property costing £664 in June - 2.6% less than 12 months ago.
London was the other area to see prices decline, although it remains the most expensive place to rent in England and Wales. The average rent in the capital stood at £1,277 in June, 1% lower than a year ago.
The latest data also shows that yields in some areas of England and Wales showed signs of improvement, especially in the North East and the North West regions which continue to offer the largest yield levels to landlords at 5.23% and 5.01% respectively.
But it is worth noting that the majority of regions saw returns fall year-on-year, meaning it remains a mixed picture for buy-to-let investors when considering the survey as a whole.
Richard Waind, director, Your Move, commented: “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.”
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Rents will continue to rise over the next few years just to pay the George Osborne #TenantTax aka Sec.24.
Prof David Miles former member of the Bank of England MPC committee calculates a 20-30% rent rise will be required just to pay the extra tax once fully phased in.
Yep. We have double digit property portfolio and due to our tax hit via section 24 the rents (which are already at record highs) are going straight up,year on year, to compensate for each 25% increment of tax relief withdrawal. We have no choice and I am sorry for the tenants but Philip Hammond wants to do this so there we go. It's going to be a blood bath. Total carnage.
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