Your Move has reported that the average rent in England and Wales was £850 in December 2017, an increase of 2.3% in the last 12 months.
Prices in the East of England led the way in the last year, with the average monthly rent increasing by 3.3% in 12 months to reach £893. It is now the second most expensive place to rent behind London.
The average rent in London was £1,274 in December, following a 1.4% fall year-on-year. The North East becomes the cheapest area to rent in the UK, with the average rent being £534.
On a non-seasonally adjusted basis, the average rent for all of England and Wales in December 2017 was £828.
For landlords, the East of England was the real success story of 2017, with rental prices in the region rising faster than anywhere else surveyed.
The average rent in the East rose from £864 in December 2016 to £893 a year later, a rise of 3.3%. The increase is due to many Londoners looking further afield in a bid to meet their housing aspirations, plus the buoyancy of the local economy, Your Move said.
Cambridgeshire is now a major jobs hub in the region and a number of towns are becoming increasingly popular with tenants migrating away from London.
Martyn Alderton, national lettings director for letting agents Your Move and Reeds Rains, said: “The rental market in England and Wales ended 2017 on a positive note for landlords, with rents, overall, up 2.3% compared to a year ago, and average yields across the country now at 4.4%.
“However, behind these figures lie fluctuations particularly in relation to the fall in average rents in London and strong growth in average rents in other regions.
“In many ways, the rebalancing of the rental market across the country should be seen as a good thing as demand spreads to other areas and keeps the market robust.
“London still remains one of the most popular and expensive places to rent, yet we are now seeing strong growth in demand for rental properties in the regions around the capital.”