Your Move’s Rental Tracker for October found that the South West led the way, with rents in the region rising faster than anywhere else during the month.
Prices in the South West grew by 4.4% in the last 12 months, well above the England and Wales average of 2.2%. Prices fell in two regions – the East of England and London.
The average rent across England and Wales now stands at £861 (seasonally adjusted), showing little change from previous surveys.
Across all regions, on a non-seasonally adjusted basis, the average property let for £934 this month.
The standout performer in October was the South West region, where a combination of strong local economic growth and high demand for housing saw prices grow faster than any other region on an annual basis.
The average rent in the region grew by 4.4% in the year to October, with the average property price now standing at £686.
But despite the rise, the region is still some way behind other parts of southern England. London remains the most expensive place to rent a property, with the average rent in the capital standing at £1,271.
However, prices in London are falling, with the average rent dropping by 0.9% over the last year. Prices in the East of England ticked down 0.4% in the year to October, with the average property now let for £890 per calendar month. It is the third most expensive region in this survey.
Martyn Alderton, national lettings director at Your Move, said: “The focus of the rental market has now well and truly shifted away from London. Prices in other regions are growing much faster and offering higher percentage returns for landlords.
“The South West was the star region this month, posting faster rent growth than anywhere else.
“Investors in the North East and North West continued to enjoy higher percentage returns than other areas, with some areas looking at a 7.5% yield Properties by the North West coast prove to be very popular. And, with the area ideal for those who enjoy outdoor activities such as running, biking and walking, it’s understandable why tenant demand is high and why landlords are choosing to buy here.
“All in all, there are positives across much of England and Wales, including the fact that tenant arrears are falling.”