According to the latest Buy-to-Let Index from Your Move and Reeds Rains, rents rose 3.0% over the course of 2014 despite falling on a monthly basis between November and December
Across England and Wales the average residential rent now stands at £767, compared to £745 in December 2013.
The strong annual growth comes in spite of falls on a monthly basis, with average rents 0.1% lower in December 2014 than in November 2014.
“There appears to be a new fire in the rental market as we enter 2015,” Adrian Gill, director of estate agents Reeds Rains and Your Move, commented. “Demand for homes to let is hotter than we would normally expect at this time of year.”
“Recent months have shown a divergence from usual seasonal norms,” Gill went on. “Historically, there is a tendency for rents to ease in the winter, particularly December. With fewer tenants willing to relocate in the festive period, landlords usually compete to fill empty properties and agreed rents tend to dip as a result. Last month that happened – and rents fell compared to November – but by much less than the usual extent.”
“In particular a jobs boom across the eastern regions of England has seen a larger than usual number of people relocating in the winter months. This has pushed up rental prices in these regions even further.”
In eight out of ten regions of England & Wales rents are higher than a year ago, with the East of England leading the way (experiencing a 7.6% annual increase). By contrast, rents in two regions are lower than twelve months ago. Over the course of 2014 average rents in the North East fell by 2.1%, while rents in in the South West are down 1.0% on an annual basis.
The average landlord in England and Wales witnessed a return, before deductions such as mortgage payments and maintenance, of £18,893 over the last twelve months. Rental income made up £8,347 of this figure, while the average capital gain amounted to £10,546.
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