Buy to Let

North east offers best returns as rents rise across UK

Rents climbed to an average of £904 across England and Wales in August.

Nine out of 10 regions saw a year-on-year increase in rents as demand continues to outstrip supply.

The fastest growth was seen in the East and North West of England, according to the latest Your Move buy-to-let index.

Monthly rents in the capital climbed to an eye-watering average of £1,282, up 1.5 per cent from a year ago. That leaps to £1,952 for those living near the centre of London, in Travelcard Zone 2.

In the South East and East of England rents rose to £882 and £876 respectively. The North East offers the lowest average rents in the UK at an average of £540 a month.

Your Move says the region also offers the best returns for landlords. Yields in the North East are 5.1 per cent, compared to an average yield of 3.2 per cent in London.

But the only region to a see a fall in rents over the past year is the South West. Rents are typically 2.7 per cent lower than a year ago at £667.  

Your Move director Richard Waind says: “Following a drop off in new tenant enquires after the Brexit vote last year and a resulting decrease in EU migration figures, we have started to see a resurgence in tenants coming to the market in recent months, particularly in London.

“Figures are returning to the levels we would expect around this time of year. August and September are the busiest months for lettings as students, graduates and families in the education sector look for new properties.”

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