Rental prices in Wales and the North East outperformed the rest of the UK in November, as land...
Rental prices in Wales and the North East outperformed the rest of the UK in November, as landlords in the regions cashed in on rises.
The North East saw a 10.35 per cent increase in rental prices, totaling £65, while in Wales they rose 7.43 per cent, or £45.
Across the country the increase was £10 on average, just a 1.08 per cent rise.
The average cost of a property rental in the UK is £985 per month.
Robin King, director, Move with Us, said: “In an improving marketplace, the stronger regions such as Greater London, South East and East Anglia tend to improve first and when their rate of growth slows, the slightly less buoyant markets start to improve and close the gap.
“This month has been no exception to the rule. As Greater London’s growth rate has slowed, Wales and the North East are performing strongly, levelling the playing field. It’s the final piece of the puzzle in the improvement of the overall UK rental market.”
London saw £21 rental increases during the month, with the market in the capital reaching something of an equilibrium after the peak of the Olympic summer in 2012.
One of the challenges for buyers is attempting to save a sufficient deposit, while coping with growing rental prices.
David Whittaker, managing director of Mortgages for Business, said that on of the key stumbling blocks is the lack of wage growth.
"As a result, record numbers now rely on the private rental sector and this has pushed up both rents and yields," he continued.
"With solid returns and low rates of tenant arrears landlords are certainly in a strong position at the moment, but with property prices on the rise, and surveyors predicting even more price growth next year, landlords may find their returns being squeezed when expanding their portfolios in 2014.
"If this is the case, we could see an increasing number of landlords purchase complex buy-to-let properties such as houses in multiple occupation which typically accommodate a larger number of tenants and produce higher yields. The good news is this will provide the rental market with more accommodation and should help keep rents under control.”
Anthony Garbutt of Belvoir Lettings Thirsk said I think that what this demonstrates is that if you have had standing tenants in your properties for a while you may be under charging, or if your property has been marketed for sales without much movement, rental offers a fantastic cash flow option with these higher rental yields.
Belvoir are always happy to take enquiries on properties and offer a no hassle, no charge appraisal for rental values.