The latest Your Move rental tracker suggests that London’s lettings market has continued to cool with prices falling by 0.5 per cent in the last 12 months, while canny investors in the north of England have seen the highest yields of anyone in the UK.
Across all regions, the average seasonally adjusted monthly rent now stands at £861. On a non-seasonally adjusted basis, the average property lets for £830 per month.
The South West of England was home to the fastest rising rents in the year to June, Your Move found. Prices here rose by 3.4 per cent in the last year and the average rental price now stands at £686.
Other regions to boast strong growth were the East Midlands (up 2.8 per cent to hit £656) while in the East of England the average price is £890, following growth of 2.0 per cent in the last 12 months.
Prices in London dropped slightly in the last year, as the heat continues to dissipate from the capital’s property market. The average rental property in London is now let for £1,271 per calendar month, down 0.5 per cent compared to a year ago.
London continues to be divided depending on where a property is located.
When London Travelcard Zones are considered, properties located in Zone 2 are typically let for £1,560 per month. This is significantly higher than those in less central areas. In Zone 6, much further from the centre of the city, the average property lets for £1,189 a month.
Investors in northern areas continued to enjoy higher percentage returns than their counterparts in the south, Your Move found.
The North East once again delivered the biggest returns, with the average property offering a 5.0 per cent return to landlords. The North West also had similarly strong returns, offering yields of 4.8 per cent in June. In Wales the typical yield was 4.6 per cent.
At the other end of the scale, the average return to London property investors was 3.2 per cent. However, as prices in the capital tend to be much higher than northern areas, the absolute returns here can be greater.
Across all of England and Wales, landlords enjoyed an average yield of 4.4 per cent in June.