Regionally, rental yields vary with the highest returns in the North (7.0%) and the lowest in London (4.8%). The North is followed by the North West, Yorkshire and the Humber (both 6.5%) and Wales (6.2%). The lowest yields are all in southern England, with East Anglia, South East and the South West all recording returns of just over 5%.
Nationally, the average monthly rent increased from £697 per month in June 2011 to £734 pm in June 2012; a rise of 5.3%.
However, there has been significant variation in rental growth between regions over the last year. The biggest increase came in London with average monthly rents rising by 10.5% (or £122 pm) in the year to June 2012; the capital is followed by the South East (6.2%) and Wales (5.8%). In contrast, rents in the South West have barely changed since June 2011 registering growth of just 0.2%. In the North average monthly rents fell marginally (-0.4%).
Not surprisingly tenants in London pay the highest average rent, which at £1,287 pm is 75% above the national average of £734. The South East has the second highest average rent (£885 pm), followed by the South West (£706).
August 17, 2012