According to the latest available figures from Your Move Rental Index for November 2018, Rents in England and Wales were up by 1.8% in the year to November 2018.
This compares to the annual inflation rate in the United Kingdom, which fell to 2.3 percent in November 2018 from 2.4 percent in the previous month, in line with market expectations, but still well above the average rent increase. Wages on the other hand are still trending well above inflation, with September data showing wages, excluding bonuses, growing by 2.9% in the three months to July.
The average rent increase in England and Wales in the 12 months to November 2018 means that the average tenant pays £864 per calendar month.
These are the key points from the Your Move report on rents:
- Rents in the South West region grew faster than anywhere else in the last 12 months, Your Move found.
- Rental prices rose by 4.3% in the year to November 2018 and now stand at £701. This is higher than the 1.8% average rise across all of England and Wales.
- This was ahead of the next best performer – the East Midlands – where rents rose by 1.9% to hit an average of £663.
- The South East steamed ahead, as prices in the region grew by 1.4% in the year to November to reach £897.
- Across all of England and Wales the average price was £864 in November. This was 1.8% higher than a year ago and 0.1% up month-on-month.
- The regions that had the largest monthly rent rise were Wales and the West Midlands – both saw prices rise by 0.4%. In Wales the average price was £594 and in the West Midlands it was £627.
- The East of England was the only region to see rents fall compared to the previous month with London also seeing a slight reduction of 0.9%, leaving the average rental price in the capital at £1,263
Commenting on the rental market for landlords, Martyn Alderton, National Lettings Director at Your Move, says:
“Properties in the North appear to offer high percentage returns to property investors and, as a result, they are attracting interest even more.
“This strong appetite to buy has been accompanied by a rise in demand for rental properties, since the North is attracting many young professionals and families with its good transport links and job prospects.
“As the London market continues to gently slow down, other regions are coming to the fore and proving attractive to investors.
“In the South West there was also good news and rental prices increased faster than anywhere else. The region boasts both the up-and-coming city of Bristol and some of the most picturesque parts of the world in Devon and Cornwall.”