The UK’s decision to leave the European Union has had a minimal impact on rents with values up across England and Wales apart from two regions, the latest index shows.
Indeed rents in August reach an all-time high of £1,391 in London while rents in the South East continue to rise at a faster pace than London reaching an average of £975, according to the buy to let index from Your Move.
Overall rents in England and Wales increased by 4.8% month on month and are up 8.7% compared to August 2015 to an average of £887, the highest national figure ever recorded by Your Move.
The index report says that there is a probably a seasonal influence underlying this growth, caused by an increase in the student sector during the summer months and this is particularly noticeable in London, the South East and the North East and it points out that rent increases are not expected to maintain this level of growth to the end of the year!
Other regions to outperform the capital included the North East. This region saw rents up 12.3% in the same time period and properties in this area now let for an average of £583 per month.
The North East has provided many popular locations for investors, encouraged by low house prices and strong returns on their investment. Yorkshire and the Humber at £580 per month is the cheapest place to rent in England and is just 42% of the cost of renting in London.
‘The rental market appears to have left any uncertainty about the market behind with prices across England and Wales again reaching record highs,’ said Adrian Gill, director of lettings agents at Your Move.
‘London continues to be home to the highest rents but other areas such as the North East and South East are witnessing even stronger levels of growth over the year, demonstrating the seasonal impact of the student market,’ he explained.
‘Yields have picked up following a gentle decline in recent months, something which landlords will no doubt watch with interest over the next couple of months,’ Gill added.
On a regional basis, the North East continues see the highest yields. Properties typically returned 5.6% to landlords in August, up on the 5.5% rate from July and also higher than the same point last year when it was 5%.
The index report points out that while house prices in the North East are typically lower than the national average, relatively high rent levels mean landlords see a better return here than anywhere else.
Other areas with above average yields include the North West at 5.1% and Wales at 5% while at the other end of the scale London landlords aw the smallest percentage return on their investment at 3.5% in August, higher than the 3.2% recorded in July but still lower than the rest of England and Wales.
Arrears levels increased in August. Some 9.8% of all tenancies had arrears of a day or more in August, above the 9% recorded a month earlier. However, the report points out that the proportion of tenants in arrears remain well below the all-time high of 14.6%, recorded in February 2010.
On an absolute basis, the number of households in serious arrears, defined as two months or more, was 34,473 in August 2016, below the 36,314 cases recorded in the previous month.
http://www.propertywire.com/news/europe/brexit-not-impact-uk-rents-latest-buy-let-index-shows/
No comments:
Post a Comment