London rents reached a record high in November, rocketing to £1,295 in comparison to £830 across the rest of the UK.
The latest Your Move Buy-to-Let index found that on average, UK rents were up 3.9 per cent year on year, with the average property costing £799 per month to rent during 2015. The survey found that regionally, rents were up in nine out of 10 UK regions, with the South West marking the only exception, experiencing a slight decline. London was once again by far the most expensive place in the UK to rent a property. The typical rent in the capital was up 1.9 per cent annually, but remained stable on a monthly basis.
The general stability of the rental market meant that landlord yields also remained steady October and November. Across England and Wales the average return was approximately 4.7 per cent in November, down 0.3 per cent year on year, but exactly the same as the previous quarter.
The North East was found to offer the highest yields at 5.3 per cent, whilst London properties offered the smallest yields at just 3.3 per cent, hampered by high initial investment prices.
With regards to tenant finance, arrears fell in November, down from 9.3 per cent the month before to 8.3 per cent.
Director of Lettings at Your Move, 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.’