According to the latest property index, residential rental prices on the whole have fallen across England and Wales by an average of 0.5% in the 12 months from June 2017 to June 2018, but in contrast there are many regions that have gone against the grain and experienced strong growth in the lettings market, with the average rent in these particular areas increasing to £861 per month.
Wales are currently among the top performing regions that offer the highest rental yields for landlords, with data showing that the average rental yield in the country sits at a healthy 4.6%. Northern England came out on top with an average rental yield topping 5%, followed by the North West offering 4.8% and Wales coming in as the third highest average. The lowest yields are in London, where just 3.2% is the average.
When it comes to rising rents, the South West come out on top where they are up 3.4% over the past year, increasing to an average of £686 per month. Other regions that experienced notable rental increases include the East Midlands with a rise of 2.8% to £656 per month, and the East of England where the average rent rose 2% year on year to £890 per month.
The recent data has shown that rents in London dropped in the last year to an average of £1,271 per calendar month, which is a 0.5% decrease compared to June 2017.
Despite the property market in London cooling somewhat, professionals in the industry have noted that strong performances in other areas means that many landlords in England and Wales are still generally enjoying positive returns on their rental investments. Tenant demand is still very noticeable in many areas, with plenty of cities outside of London such as Plymouth and Bristol proving to be growing hotspots, with strong economic growth, large developments and strong employment opportunities encouraging tenants to move into these sort of cities.
Popular student catchment areas also show high demand for city centre apartments and Houses of Multiple Occupation (HMO's). Many of the millennial generation, both students and those in full-time employment alike, are opting to rent in these city centre locations due to the lifestyle choices that they can offer and the flexibility renting brings in comparison to buying. This demand is keeping rental prices and the average yield up as tenants are showing that their willing to pay a little more for a quality property in a good location.
If you're a landlord in Cardiff looking to make the most of your rental investment, then don't hesitate to get in touch with our expert lettings team here at CPS Homes. We can help every step of the way with a variety of letting services, from sourcing the perfect tenant through to complete management of one property or a portfolio of properties. Call us today on 02920 668585, e-mail email@example.com or pop into one of our three Cardiff branches.