England and Wales July 2018 Report Released
Your Move has today released its England and Wales Rental Tracker Report and finds that the London market is continuing to ‘cool’, with prices falling by 0.5% in the last 12 months, while South West enjoys fastest rising rents so far this year.
Key headlines flagged in the report are:
- Small fall in London rents
- South West of England see rents rise fastest
- Landlords in northern areas enjoy highest yields
- Fewer tenants in financial trouble
The report states that London rental prices have dropped over the past 12 months as “the heat continues to dissipate from the capital’s property market”. This has resulted in an average price of £1,271, down 0.5% compared to this period last year. But Your Move finds that London “continues to be divided” when Travelcard Zones are taken into consideration.
“Properties located in Zone 2 are typically let for £1,560 per month”, says Your Move. “This is significantly higher than those in less central areas. In Zone 6, much further from the centre of the city, the average property lets for £1,189 a month”. An amount out of reach for the average worker.
Other regions are outperforming the capital, however, according to the report, with the South West of England seeing the fastest rising rents during the first half of the year. Regional prices, including rural areas of Cornwall and Devon, as well as Bristol city have risen by 3.4% in the 12 months, with the average rental price standing at £686 per calendar month.
“Plymouth is a particular hotspot,” says Martyn Alderton, National Lettings Director at Your Move says. “As well as a lower cost of living, current multi-million pound developments are creating employment opportunities… strong economic growth is encouraging many tenants to live here. Plymouth’s student market is also very active, as is demand for HMOs. Demand is therefore keeping rental and yield payments up as tenants are willing to pay provided the quality is high.”
East Midlands prices saw an uplift of 2.8%, averaging at £656, and the East of England saw similar growth of 2% meaning average prices sit at £890. The North East has seen the biggest returns again, with average yields being 5%, and the North West is similarly offering strong returns of 4.8%. This is compared to a 3.2% return from landlords and property investors in London.
In Wales though, landlords have seen rents fall by 1.9% from this time last year to an average rental price of £535, making it one of the cheapest places to rent along with the North East of England.
The report concludes by claiming that there are “fewer struggling tenants in June”, with a decline in those being in “financial difficulty”, but supports this statement with a finding of just a 0.1% drop from 9.2% seen in May. But the average arrears rate of close to 9% in 2018 to date is good news for landlords as it falls well below the a 13.7% high recorded by Your Move in July 2017.
For more information and to download the full report, visit Your Move’s media centre: