A low supply of rental homes on the market continues to push rents up across England, Wales and Scotland, new figures reveals.
The latest Your Move England & Wales Buy to Let Index, created and reviewed in partnership with Cebr, shows that the average rent across England and Wales now stands at £904 per calendar month (pcm), following a 3.1% price increase in the last 12 months.
Rents in both the East of England and the North West rose faster than any other region during August, Your Move found.
Richard Waind, director, Your Move, commented: “The strongest price growth continues to take place outside of London and the South East, with the East of England and the North West among the regions to grow faster in the last year.
“However, despite rising rents, the yields achieved by landlords continue to be squeezed.”
In Scotland, average rents grew in four out of the five regions analysed, with the typical rent north of border hitting £579pcm last month, up 0.7% on July.
Landlords continue to enjoy returns of 4.9% in Scotland, which demonstrates the stability offered by the rental market in Scotland, and the positive returns on offer to investors.
Brian Moran, letting director, Your Move Scotland, said: “Rental prices are increasing across much of Scotland thanks to high levels of demand and poor supply in many areas, with particular strain in Edinburgh which saw prices rise by 4.1% over the year”
“Scottish landlords continue to see returns of close to 5%. It’s crucial that all landlords in Scotland start to prepare for the changes on the horizon such as Letting Agent Code of Practice which is due to commence in early 2018.
“Landlords should be talking with their agents now to make sure they are prepared for the changes and understand what it means for them, sooner rather than later.”