The average rent across England and Wales increased by 2.2% in the 12 months to October to stand at an average of £861 per calendar month (pcm), unchanged from September, according to new data from Your Move.
Seven of ten regions analysed by Your Move’s rental tracker saw rents rise year-on-year, led by gains in the South West of England where prices have grown by 4.4% in the last 12 months, supported by a combination of strong local economic growth and high demand for housing.
But prices fell 0.9% in London and 0.4% in the East of England , while rents in Wales remained flat year-on-year.
The capital remains the most expensive place to rent property, at an average of £1,271pcm, while at the other end of the scale, the cheapest place to rent in the country is the North East at an average of £535pcm.
On a monthly basis, the North East and West Midlands saw the biggest rent increase. Both regions saw average rents rise by 0.4% between September and October.
The North West was a close third in terms of growth, with rents rising in the region by 0.3% over the same period.
The East of England was the only region to fall compared to the previous month.
Properties in northern regions continue to achieve the highest yields across England and Wales.
The average investor in the North East enjoyed a rental return of 5% in the year to October while in the North West this figure was 4.8%.
Landlords in London once again saw the lowest percentage returns, at an average of 3.2% last month.
Across all of England and Wales, landlords enjoyed an average yield of 4.3% in October, the same as in September.
Martyn Alderton, National Lettings Director at Your Move, said: “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% yield.”
He added: “All in all, there are positives across much of England and Wales, including the fact that tenant arrears are falling.”