Rents in England and Wales increased by 4.45% to an average of £861 in the 12 months to June 2018 but month-on-month there was virtually no movement, according to latest rental tracker index.
The rental market in London, which remains the most expensive place to rent with an average rent of £1,271, continues to cool, with prices falling by 0.5% in the last 12 months, according to Your Move’s latest England & Wales Rental Tracker.
Two other regions also saw rents fall in the last 12 months.
In Wales, where the average property lets for £588 a month, rents are down 1.9% year-on-year, while the North East, which remains the cheapest place for tenants to rent a property in England and Wales, saw rental prices drop by 1.6% to £535 a month.
Other regions continue to perform well, however, with the South West, which includes the likes of Bristol, Devon and Cornwall, enjoying the strongest rental growth, rising by 3.4% in the past year to reach an average of £686 a month.
Martyn Alderton, national lettings director at Your Move, commented: “While the property market in London has cooled, the strong performance in other areas means landlords across England and Wales are enjoying good returns.”
He added: “The South West of England is home to the fastest rising rents as tenant demand continues.
“Plymouth is a particular hotspot. As well as stunning countryside and lower cost of living, current multi-million pound developments are creating employment opportunities coupled with the expansion of the dockyard and hospital, strong economic growth is encouraging many tenants to live here.”
Other regions to see strong growth were the East Midlands and East of England.
Prices in the East Midlands grew by 2.8% to hit £656 a month while in the East of England the average price is £890 a month, following growth of 2% in the last 12 months.
Across all regions, the average seasonally adjusted monthly rent now stands at £861 a month.
The average yield in England and Wales in June was 4.4%, unchanged from the previous month.
The highest yield is 5% in the North East, followed by 4.8% in the North West, and 4.6% in Wales.
At the other end of the scale, the average return to London property investors was 3.2%.