September, 2017
There were plenty of predictions and forecasts on how 2016’s introduction of higher stamp duty and 2017’s changes to tax relief for landlords, would change the buy to let market and now it appears we may be seeing the effects.
The latest Buy to Let Index has revealed that rental rates across England and Wales have risen over the past 12 months, finding an average monthly increase of 0.22% and a 3.1% increase year on year, taking the current average price of rent to £874.
According to the index, 9 out of 10 regions across England and Wales have seen a rise in rental prices, with the South West being the only region that saw rental rates fall over the last 12 months, dropping by 2.2% to £667 per month on average.
The highest growth in rents by region was seen in Wales, as data from the index revealed a 4.3% jump over 12 months, resulting in an average of £595 per month. There was also considerable growth seen in the South East of England, showing the second highest rise of 3.6% to reach an average of £884 per month.
In regards to the highest rental rates, London is expectedly on top, as the average rent in this region currently sits at £1,283, however, the capital only saw a 1.2% rise in rental rates in the last year.
In terms of yields, it appears that landlords in the north of England have seen the highest return. The index showed landlords in the North East and the North West received an average yield of 5.2% and 5% respectively.
