UK: RENTS IN THE UK REACH NEW HIGHS
The average rent has now risen above £800 per month across England and Wales.
New research saw average rental figures in July hit £804, up from £789 in the previous month - an increase of 1.9%. This is the fastest month-on-month rise since records began in 2009.
The data also highlighted the largest annual rise in rents on record. Compared to the same month in 2014, the average rent in England and Wales was recorded at £753. In July 2015, rental figures averaged at £804 - a 6.8% rise in just 12 months.
Every major region across England and Wales saw a rent increase for the month of July, with four out of ten of these regions reaching record high averages for their area. Yorkshire and the Humber is one of the areas to see peak prices, with rents up by 2% from 2014.
The North West continues to see the highest rental yields in England and Wales, with figures for July showing an average of 7% throughout the region.
The news follows on from an increase in buy to let activity in the UK, with the number of buy to let property valuations experiencing a significant boost.
Graham Davidson, founder of a property investment company, comments on the record high rental figures:
"We expect rents to increase annually in the same way we expect to see house price growth. The summer months are usually busy for the property market so the rise in figures would have been in line with investors’ expectations. The continuing increase in rental figures demonstrates the level of demand for rental properties and the growing popularity of buy to let."
"The North West has consistently held the highest rental yields for the country and the news will come as a positive for any buy to let investor. It was confirmed earlier this year that Manchester has been the best city for investment and one of the top places in the country for buy to let yields. Although London is typically attractive due to its high rents, it is rare that properties achieve good yields and even the potential for capital growth falters as house prices in the south continue to cool. Furthermore, rents are in danger of becoming so high that tenants experience affordability issues and are forced out into other areas. Investors can achieve much better returns in the North and the rental figures within this report echo our thoughts."