Fastest year for rent rises since 2011
- At £794 per month, rents rise by 3.4% during 2015 – the fastest year-end annual growth rate since 2011
- In the East of England rents rise at twice the wider annual pace, up 7.8%, followed by London at 6.3%
- Yorkshire & Humber and West Midlands both witness new all-time record high rents in December
- Tenants feel the financial pressure over the Christmas period, with arrears rising to 9.3% of all rent due
- Accelerating property prices suppress yields, but boost total annual returns to 11.3% – a 12 month high
Rents across England and Wales have risen by 3.4% over the course of 2015, according to the latest Buy-to-Let Index from Reeds Rains.
This represents the fastest full calendar year for rent rises since 2011, when rents rose by 4.0% over twelve months. It follows a significant slowdown in rent rises, reversed more recently even as general CPI inflation has stabilised around zero.
Significant rent rises over the course of 2015 also come despite a month-on-month drop in the latest market rents, falling 0.6% between November and December.
This puts average rents at £794 per month, as of December 2015.