London rents are up £10 year on year for landlords, ending 2016 at a total of £1,291 according to the latest Your Move Buy to Let Index.
The average UK rent was £811 during December, up from £790 in January 2016. Regionally, most areas saw rents rise or remain stable, with only the South West and North East experiencing decline. The fastest rent rises were found in the East of England at 6.1 per cent, followed closely by the South East at 4.6 per cent.
London offered the highest rents, although there was a slight monthly decline. November saw rents at £1,295, £4 more than December’s total. It was the only region to see a monthly fall in rent price. The East of England saw rents rise 0.7 per cent month on month, with the South West and East Midlands seeing growth of 0.6 per cent and 0.5 per cent. However, despite the South West’s strong monthly growth, it saw an annual decline of 1.4 per cent.
The North East was the cheapest location in the UK to rent a property, with a fall in prices of 0.2 per cent contributing further to this. The average property on the market in the area was just £543.
Tenant finances continued to improve in 2016, although arrears increased slightly between November and December with 8.7 per cent of tenancies having arrears of a day or more in the final month of 2016. The number of households in serious arrears of two months or more reached 21,080, up from November’s total of 18,127.
Lettings Director at Your Move, Valerie Bannister, 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.’