Biggest rent rise and falls in England and Wales revealed
London saw a 1.4% yearly fall in rents and offers the lowest yield for landlords, Your Move research showed.
The capital remains the most expensive area for tenants, with an average bill of £1,274 a month, but buy-to-let yields are at 3.2%. Rents fell fastest in the North East with a 1.7% annual drop to £534.
However, the region offers the best return for landlords with a 5% yield, followed by the North West at 4.9%. Overall the average rent in England and Wales hit £850 in December after an annual increase of 2.3%. The East of England is now the second-most expensive place to rent at a typical £893.
Renters at risk
At the same time, a survey by Scottish Widows has found UK renters are putting themselves at risk of homelessness by failing to have a financial safety net in place.
The survey showed that a third (38%) of private renters admit they wouldn’t be financially secure if their household lost its main income. Nearly four in 10 (39%) – amounting to 4.14 million people – said that if they fell seriously ill and were unable to pay their rent, they would have no idea where they would go, or they could be left homeless.
Only 4% of private renters have critical illness cover and only 22% have life insurance.
The increase in prices in the East of England is a result of Londoners flocking from the capital for cheaper housing and the strong local economy with Cambridgeshire supporting many jobs in the region, according to Your Move.
Sue Maher, branch manager of Your Move in Peterborough, said: “We’re seeing a large shift in commuting patterns as tenants look to relocate away from London, to towns like Peterborough and Norwich, which are attracting a wide range of employers.
“The City Hospital in Peterborough, for example, attracts many doctors and nurses to the area and local business parks house the offices of Travelex, Thomas Cook, Mastercard and Amazon to name a few.
“As a result, these areas are predominately rented by young working professionals and families, rather than students or older residents.”
Elsewhere rent prices in the East Midlands lifted by 2.8% annually and by 2.7% in the North West.