Rents Rise by 10.2% in the East of England

The latest Buy-to-Let index data reveals strong rental growth across the region, intensifying pressure on tenants.

Regional Rental Growth

In February 2015, rents in the East of England increased to £787 per month, compared to £714 a year earlier. This represents a 10.2% rise year-on-year. London also recorded notable growth, with rents 4.9% higher than in February 2014.

Across England and Wales, average rents now stand at £766 per month, up from £743 in February 2014, marking an overall 3.1% increase.

Regional Disparities

While most regions saw rent inflation, the North West (-0.3%) and North East (-0.4%) experienced slight year-on-year declines. The West Midlands and South West remained stable.

Rental Yields and Market Supply

Gross rental yields across England and Wales have dropped by 0.2 percentage points since February 2014, now averaging approximately 5.0%. Yields have stabilised as property prices level off.

Tenant arrears worsened, with 7.6% of rent in arrears in February 2015, up from 6.9% a year ago. This highlights growing financial pressures on renters.

Limited property supply has contributed to the upward pressure on rents, especially in London, where rents have surged over 20% in the past seven years.

Impact of Pension Reforms

The government's removal of compulsory annuities has spurred speculation that pension holders may invest in buy-to-let properties. This could increase supply and potentially cool rental growth in the future.

Future Outlook

Despite political uncertainty ahead of the general election, economic indicators suggest that the rental market remains a solid medium- to long-term investment. Partnering with a reputable agency can help investors manage daily challenges and guarantee rental income.

Get Involved

To learn more about how these trends affect renters and landlords, read our full analysis or join the W.E.U..

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