The price of renting a property in England and Wales saw its fastest growth for four years in 2015, with investors across the nation seeing their income rising as demand helped to prop up the private rented sector yet again.
According to the latest data from Your Move and Reeds Rains, the average rental price climbed to £794 per calendar month nationwide by the end of 2015, which was 3.4 per cent higher than in the year before. This was also the fastest rate of growth recorded in any single year since 2011, the report stated.
Once again the regions were proving themselves to be a very strong place to invest, with the average rental price in the East of England topping all others, including London. In the capital, prices over the year were up by 6.3 per cent. This was compared to the 7.8 per cent rise recorded in the East of England, showing how demand away from London is helping to push the market to all new highs for investors.
This fact was further backed up by the fact that rental prices in both Yorkshire and the Humber and the West Midlands reached all-time highs throughout 2015, as more and more people looked to rent within.
Overall, the positive figures for the end of the year even comes in spite of a very small 0.6 per cent fall in the price of rent nationwide between November and December, showing just how strong the year was as a whole.
“The fact that the majority of tenants can afford higher rents is certainly good news, and should be seen as a positive indicator as we enter 2016. Yet over the longer term, higher rents also raise a serious challenge for the future affordability of housing in this country,” said Adrian Gill, director of estate agents at Reeds Rains and Your Move.
“Existing property investors are seeing the paper value of their portfolios rise considerably, as purchase prices accelerate,” he added.
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