Rental reprieve in October – but property prices boost landlord returns
- October sees rents dip on a monthly basis, now averaging £806 per month across England & Wales
- However the cost of renting a home has risen considerably in the last year – with annual rent rises at 4.7%
- Yorkshire & Humber and the East Midlands both defy a wider slowdown to see rents hit fresh local records
- Tenant finances improve in October, with arrears representing 7.9% of rent due, down from 8.6%
- Landlords see total annual returns rise to 11.6%, as purchase prices accelerate – but yields drop to 5.0%
Rents across England and Wales have fallen between September and October, according to the latest Buy-to-Let Index from Reeds Rains.
Average rents now stand at £806 per month. This follows a month-on-month fall of 1.2% – down from September’s all-time record high of £816.
Despite this, rents are considerably higher than a year ago. In the twelve months since October 2014, average rents have risen by 4.7%. After negative CPI inflation of -0.1%, this represents real-terms annual rent rises of 4.8%.