The average cost of renting in England and Wales has reached a new all-time high.
The most recent report from Your Move has shown that average rents have now hit £846 per calendar month, making buy-to-let investments still a good option for landlords.
This is the highest price pcm recorded by Your Move.
The cost of renting in July was up by 5.2% year-on-year and 4.4% higher than the £810 recorded in June.
Good news for buy-to-let investment, there seems to be no signs of a post-Brexit slowdown in the UK’s rental market.
In fact, data from the company suggest that 72% of landlords are just as likely, or even more likely to expand their buy-to-let portfolio following the UK’s decision to leave the EU.
Adrian Gill, Director of lettings agents Your Move commented, “The UK’s vote to leave the European Union has not caused any immediate change in the rental market, although we must wait for longer term trends to develop. For landlords, market sentiment remains positive with the vast majority still looking to add to their portfolio of properties, despite the Brexit vote.”
Rise of buy-to-let investments in the commuter belt
The report has shown that rents in London were down by 0.7% year-on-year. The average cost of renting in the city now stands at £1,273.
London also provides landlords with the lowest yields in the country. Investors can expect to generate an average return of 3.2% (down from 4.5% y-o-y) and, due to the high price of property in the Capital, they can expect to pay the most for property.
Rents in the South East of England increased by an impressive 14.9% in July when compared to the previous year.
“The South East was home to the biggest leap in rents, with many Londoners moving further afield in an attempt to escape high rents in the capital,” Gill explained.
Rents in the East of England were also up 4.5% year-on-year to an average of £857pcm. Commuter towns outside of London, like Luton, continue to thrive in the months after Brexit.
Just 22 minutes by train to London, Luton has emerged as a buy-to-let hotspot for landlords. Continue to check our site for buy-to-let investments in Luton.