Your Move’s November report shows that the average rent across England and Wales was £864 in November, an increase of 1.8 per cent over last year, and up 0.1 per cent month-on-month.
Investors in northern regions have experienced the highest quantity of returns, with the North East seeing an annual yield of 5 per cent and the North West 4.8 per cent.
London has remained the most expensive area to rent at an average of £1,263 per month. However, the capital had the smallest yield return at 3.2 per cent during November 2018, with the average across England and Wales being 4.3 per cent.
The region that experienced the largest yearly growth was the South West which saw rents increase 4.3 per cent, now at £701 on average, according to the report.
However, the East of England saw a decline in yields, dropping from 3.7 per cent to 3.6 per cent. The region’s rental market slumped further by 1.1 per cent year-on-year, with the average property now £881 per month.
The East of England and London were the only areas to see rents fall, with the latter dropping 0.9 per cent.
The regions that had the largest monthly rent rise were Wales and the West Midlands, with both seeing prices rise by 0.4 per cent. In Wales the average price was £594 and in the West Midlands, £627, as recorded in November 2018.
Furthermore, the proportion of tenancies in arrears dropped from 8.6 per cent in October to 8.1 per cent.
Your Move national lettings director Martyn Alderton says: “Properties in the North appear to offer high percentage returns to property investors and, as a result, they are attracting interest even more.
“This strong appetite to buy has been accompanied by a rise in demand for rental properties, since the North is attracting many young professionals and families with its good transport links and job prospects.
“As the London market continues to gently slow down, other regions are coming to the fore and proving attractive to investors.
“In the South West there was also good news and rental prices increased faster than anywhere else. The region boasts both the up and coming city of Bristol and some of the most picturesque parts of the world in Devon and Cornwall.”