The London rental market has continued to cool, with prices falling by 0.5% in the last 12 months, according to the Your Move Rental Tracker.
While the capital remains the most expensive place to rent in England and Wales, recent price increases appear to have reached a plateau. Other regions continue to perform well, however, with the South West enjoying the strongest rental growth.
Across all regions, the average seasonally adjusted monthly rent now stands at £861. On a non-seasonally adjusted basis, the average property lets for £830 per month.
The South West of England was home to the fastest rising rents in the year to June, Your Move found.
Prices in this region – which includes rural areas of Cornwall and Devon, plus the major city of Bristol – rose by 3.4% in the last year. The average rental price now stands at £686.Other regions to boast strong growth were the East Midlands and East of England. Prices in the East Midlands grew by 2.8% to hit £656 while in the East of England the average price is £890, following growth of 2% in the last 12 months.
Prices in London dropped slightly in the last year, as the heat continues to dissipate from the capital’s property market.
The average rental property in London is now let for £1,271 per calendar month, down 0.5% compared to a year ago.
Martyn Alderton, national lettings director at Your Move, said: “While the property market in London has cooled, the strong performance in other areas means landlords across England and Wales are enjoying good returns.
“Northern regions offer the highest percentage returns; the South West of England is home to the fastest rising rents as tenant demand continues.
“Plymouth is a particular hotspot. As well as stunning countryside and lower cost of living, current multi-million pound developments are creating employment opportunities Coupled with the expansion of the dockyard and hospital, strong economic growth is encouraging many tenants to live here.
“Plymouth’s student market is also very active, as is demand for city centre apartments and Houses of Multiple Occupation (HMOs). We are seeing many millennials preferring to rent here due to their lifestyle choices and the flexibility it brings compared to buying. Demand is therefore keeping rental and yield payments up as tenants are willing to pay provided the quality of the rental property is high.
“Bristol too – with rents rising by 3.4% this year – is also proving popular with ongoing development of the City and strong employment opportunities available as a result of Airbus, Rolls Royce, GKN and the MOD – which have a huge presence already in the City.
“As a result demand for rental properties is high which is contributing to rent increases. Areas around Filton, for example, have had a huge impact on average rental prices recently due to the Super Hospital being built, which covers the whole of the Bristol area, there is a high demand for rental properties in that area and all the surrounding areas.”