Despite a turbulent year for the buy-to-let market, average rents across most of the UK went up last year.
According to the latest Your Move buy-to-let index, the average rent was £811 in England and Wales during December, up 2.2% from January’s figure of £790.
Regionally, most areas saw rents rise or stay broadly flat compared to 12 months ago.
As demand for properties in London slows many people are now looking outside of the capital for options.
The South East saw strong rent rises across the year of 4.6% and in the East of England the typical rent has grown 6.1% since December 2015 to reach an average of £864 per month.
The East Midlands was the next best performing area as rents in the region grew by 5.5% in the past year to reach £633. Other areas to perform strongly included Wales (up 4.9%) and the South East (4.6%).
Only two areas saw average rents fall on a yearly basis. In the South West homes are now let for £660 per month, 1.4% lower than 12 months ago. The North East saw a smaller fall with prices down 0.2% on the year.
London remains home to the highest rents in England and Wales, with a typical property let for £1,291 in December, just £4 lower than November’s total of £1,295.
The North East remains the cheapest place to rent in England and Wales, with the average property on the market for £543.
Landlords in the North East continue to enjoy the strongest yields, with properties returning 5.3% in January – the same as October and November.
Valerie Bannister, lettings director at Your Move, said: “The rental market in England and Wales has ended the year strongly, with all key indicators looking positive.”
“Rents ended the year higher than they started in most areas, yet tenant arrears have remained broadly at the same level.
“Average yields have remained stable across the country, with some regions continuing to offer well above average returns to investors.”
