The report revealed that average prices in the two regions rose by 3% in the year to May. Prices in the South West now stand at £682 while in the East Midlands that figure is £656. Across all regions, the average seasonally adjusted monthly rent now stands at £861. On a non-seasonally adjusted basis, the average property lets for £818 per month.
As the London rental market continues to cool, other regions have stepped up and are now growing faster than the capital.
The East Midlands and South West regions both recorded growth of 3% in the year to May, significantly ahead of the 0.3% annual drop in London. Prices in the East Midlands and South West stand at £656 and £682 respectively, but both are well behind London, which remains the most expensive place to rent in England and Wales. The average property in the capital now lets for £1,273 per calendar month.
While prices in London have fallen year-on-year, other regions have seen greater price falls. In Wales the average rent charged is down 2% and now stands at £587 while in the North East the average property costs £536 following a fall of 1.6% Wales, the North East and London were the only regions to post an annual fall.
Yields squeezed in Wales and North West
While landlords in most areas of the country saw yields stabilise between April and May, Your Move reported a fall in two areas of this survey. Landlords in Wales saw their average yield fall from 4.7% to 4.6% this month, while those in the North West saw a drop from 4.9% to 4.8%. Investors in the remaining seven regions all saw their returns stay the same in May. Northern regions continue to offer the highest percentage returns.
In the North East the average landlord enjoyed a return of 5% on their investment while in the North West it was 4.8%. This compares to just 3.2% in London, although as prices in the capital tend to be much higher, the absolute return can often be more than other regions. Across all of England and Wales, landlords enjoyed an average yield of 4.17% this month.
Martyn Alderton, National Lettings Director at Your Move, comments: “Landlords will be encouraged to see strong rent growth and solid yields in most areas of England and Wales. However, for renters the East Midlands and South West have seen prices grow faster than anywhere else in the UK.
Meanwhile landlords in most of the nine regions surveyed have seen their returns remain steady this month, contrasting the recent declines we have seen.”
