Rents hit a record high outside of London

Steve Lumley·14 October 2020·4 min read
Rents hit a record high outside of London

Strong demand from tenants has led to rents outside of London hitting a new record high, new figures reveal.

And rental yields are also increasing in most regions monitored.

An analysis from Rightmove reveals that landlords in the South West of England saw rents rise by 4%, while in the North West they rose by 3.1%.

In the North East and Yorkshire and the Humber, they grew by 3%.

However, landlords in inner London saw rents falling by 6.8%, while landlords in outer London saw rents rise slightly by 0.8%.

The top in-demand rental property in September 2019 was a studio flat, and then a two-bedroom house.

Two-bedroom houses to rent are now in most demand

This year, two-bedroom houses to rent are now in most demand, followed by bungalows and houses as tenants look to set up a work from home space.

There are 20% more properties available for rent in September then there was last year, but competition for these homes is stiff.

The average rent is now £964 per month - a new record.

Rightmove director, Miles Shipside, said: "Landlords who have a portfolio of studio flats may find they have to accept a lower rent, though rents overall have gone up by £140 in the capital, and £110 per month outside.

"Accidental landlords with one property now need a good agent to promote their buy to let attributes."

Rental yields continue to rise

It has also been revealed that yields are still continuing to grow.

Figures from Fleet Mortgages, the specialist buy to let lender, reveal that yields for a buy to let residential property in England grew by 0.4%, to reach an average of 6.4%.

The top rental yields are found in the North East with a 2% rise over the past year to 8.8%.

Rental yields fell slightly in the East Midlands and the North West but yields there were relatively strong previously.

A director of Fleet Mortgages, Steve Cox, said: "It's a positive that most regions in England are posting rental yield increases, and regions that fell slightly, were at relatively high levels already to begin with.

"We learned over a decade ago from the post-Credit Crunch, that rents are not as susceptible as property prices are to recession.”

News that rents and yields are increasing for landlords has been welcomed by the managing director of Accommodation for Students site.

Simon Thompson said: "This has been a difficult year for most landlords, what with the Coronavirus pandemic lockdown affecting them and agents, so this is good news to cheer everyone up.

"Looking forward, there are strong fundamentals for the country’s rental sector and landlords should take heart from the figures revealed by Rightmove and Fleet Mortgages as a positive sign."