The decision to leave the EU appears to have had little impact on rents, new data suggests.
Rents in England and Wales have reached record highs following the pre-referendum slowdown, driven by growth in London and the South East.
According to lettings agent Your Move, rental properties now command an average of £887 per month, the highest figure ever recorded by the firm.
There is a certain seasonal influence underlying this growth, caused by an increase in the student sector during the summer months. This is particularly noticeable in London, the South East and the North East.
Rents in August rose by 8.7% compared to the same period a year ago. This is in stark contrast to June, the month of the referendum, when the average rent shrank by 2.4%.
Rents in the London grew 6.9% in the last 12 months to reach an all-time high level of £1,391. However, this performance was bettered by the South East where rents reached £975 per month in August.
The data suggests this increase in the South East was buoyed by students moving into new rental properties, although the level of growth is not expected to be maintained to the end of the year.
The North East continues to be home to the highest yields, with properties in this area typically returning 5.6% to landlords in August. This level is up on the 5.5% rate from July and also higher than the same point last year (5.0%).
While house prices in the North East are typically lower than the national average, relatively high rent levels mean landlords see a better return here than anywhere else.
Other areas with above average yields include the North West (5.1%) and Wales (5%), Your Move found.
Adrian Gill, director of Your Move, said: “The rental market appears to have left any uncertainty about the market behind with prices across England and Wales again reaching record highs.
“London continues to be home to the highest rents but other areas such as the North East and South East are witnessing even stronger levels of growth over the year – demonstrating the seasonal impact of the student market.”
“Yields have picked up following a gentle decline in recent months, something which landlords will no doubt watch with interest over the next couple of months.”
