East Midlands leads rental market in England and Wales

East Midlands leads rental market in England and Wales

By Property News Team

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Property in fastest growing region now costs £893 per month on average, with prices in South West and East of England also on the up

The East Midlands posted faster rent increases than any other part of England and Wales in the year to March 2018.

The region, containing cities Derby, Leicester and Nottingham, posted an average price increase of 3.2% in the last 12 months, according to the latest figures from estate agents Your Move.

A typical property now costs £893 per month, tied with the South East as the joint second most expensive place in the survey. The South West (2.3%) and East of England (2.1%) also experienced strong growth.

Above: 3 bed semi-detached house to rent in Derby, on the market for £650 pcm

But the North East saw the biggest fall in prices, the typical rent dropping 1.8% year-on-year to £536 per calendar month.

Wales also dropped by 0.8% to £593 per calendar month, as London remains the most expensive place to rent with an average price of £1,276.

Above: Monthly rents in March by region

All-but-one region saw rental yields remain consistent, with Wales seeing average investor returns ticking down from 4.8% to 4.7% in the last month.

Despite rents falling, the North East - which includes the popular university towns of Middlesbrough, Newcastle and Sunderland - continues to offer stronger returns than anywhere else with an average yield of 5% this month.

There was a slight increase in the proportion of renters in England and Wales in arrears during March 2018, with 9.1% of tenants behind on their payments this month, up on the 8.6% rate recorded in February.

Read more: How to become a property investor with £100

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