UK renters are increasingly looking outside of London, as the capital’s rental market reaches an affordability ceiling.
Your Move’s latest buy-to-let index shows rents across England & Wales averaged in February.
In London, however, the exodus of renters looking outside of the capital for more affordable accommodation has resulted in slower rental growth, with rents declining 1% year-on-year and 0.5% from the previous month to an average of in February.
Similarly, the rental market in the South West also saw pressure ease in February, as rental properties reached a surplus in the region; rents in the area reduced by 1.5% year-on-year, with the average price now standing at pcm.
Tenants in Wales, on the other hand, saw rents surge the quickest over the month, with the average property letting for in February – a 7.7% annual increase.
A monthly reduction saw rental returns slide by 0.1% from January to an average of 4.1% across England and Wales.
The highest rental returns were found in the northern regions of the North East & North West, where average returns stood at 5.3% & 5% respectively, in February.
Conversely, landlords with properties in the South East and South West saw rental return fall below 4% in February, following a year-on-year decline.
The news follows Knight Frank and IHS Markit’s latest publication, which found that property owners continued to remain positive about the UK property market in March.