With savers continuing to receive poor returns from banks and building societies, thousands of people unsurprisingly continue to turn to residential property as a means of supplementing their income, supported by record-low mortgage borrowing rates, solid demand from tenants and stable yields, as buy-to-let consolidates itself as the investment of choice.
Despite a challenging time for the market, characterised by tax and regulatory changes, investment in buy-to-let continues to outperform most major asset classes, as demand for rental homes continues to grow.
“The property market still represents a great investment opportunity for landlords across the country,” said Martyn Alderton, national lettings director at Your Move.
According to the latest Your Move rental tracker released today, the average property across England and Wales was let for a monthly rent of £863 in May, representing a 0.2% rise when compared to both the previous month and May 2018’s figure.
The West Midlands was the fastest growing area this month, with price growth of 4.1% year-on- year taking the average rent in the region to £643 per calendar month.
Other regions to see strong price growth were the South West, where prices grew 2.8% to hit £701pcm, and the North West, which saw a price rise of 2.4% to £648pcm.
London remains the most expensive place to rent in the country, with an average price of £1,265pcm.
The capital was one of only two regions to post an annual fall in rental prices. The other was the East of England, where rents dropped by 2% in the last 12 months. The average rent in this region is now £874pcm.
However, while rents in London are slightly down compared to a year ago, there are green shoots of recovery for the market as prices grew 0.2% between April and May.
In addition to London, both the West Midlands and Wales saw prices grow by 0.2% on a monthly basis.
Alderton continued: “The West Midlands was once again the star performer in the regional lettings market, with price growth of 4.1% in the last year.
“This helped the rental market grow overall, given rents in London and the East of England have fallen in the same period. However, strong monthly growth in the capital shows the London market may have turned a corner.”