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Landlords Savour Substantial Rental Increases at the End of 2016

Rents across England and Wales rose by nearly 4% year-on-year last November, according to Your Move’s latest buy-to-let index.

Rents across England and Wales rose by nearly 4% year-on-year last November, according to Your Move’s latest buy-to-let index.

A recent survey conducted by estate agency Your Move has found that the average rent in 9 out of 10 regions across England & Wales increased annually by 3.9% in November, with tenants paying an average of £830 per month in November 2016.


Regionally, both the rental markets of the South East of England and Wales have outperformed the pace of growth seen across the rest of the UK, with rents in these regions rising by 13.6% to £875 and 6.2% to £584 respectively.


The South West was the only region where rental costs dipped slightly in November when compared to a year earlier, with Your Move’s survey signalling an annual drop from £663 to £656.


North East landlords also saw rents rise quicker than the national average, as rental costs in the region reached £542 in November, rising at an annual pace of 4.2%.


In terms of rental return, figures show that the average return for a buy-to-let property was 4.7% in November across England & Wales, a slight drop from the 5% recorded a year prior, but the same amount seen in the previous 3 months.


Achieving the best rental yields in the month was the North East, where landlords saw their properties return an average of 5.3% - higher than the 5% recorded in 2015.


Similarly, the North West and Wales have achieved rental yields above the national trend, with landlords in these regions obtaining an average return of 5.1% and 4.9% respectively.


Commenting on the findings, Your Move’s Director of lettings agents Adrian Gill said:


"The rental market is still holding strong, despite ongoing pressures elsewhere in the British economy.


"Landlords are continuing to see strong yield levels and rents are increasing, even if growth is slower than it was previously.


"Tenants are now in a much better financial position than earlier in the year. Fewer are struggling with rent payments and this is great news for tenants and landlords alike.


"There is now a great deal of stability in the rental market and this means there is a solid platform for growth in future months."


The strong growth reported by Your Move follows forecasts from Cushman & Wakefield last month which depict a strong and resilient rental market set to grow over the next two years, even while underpinned by Brexit negotiations.

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