Average rent now at all-time high as market shrugs off Brexit fears

The average rent in England and Wales has reached an all-time high of £846 per month - a year-on-year increase of 5.2 per cent. 

Data from Your Move suggests no significant effects yet from the fallout of the EU referendum result. 

Rental growth in the south east of England was significantly higher than anywhere else, with the typical property now commanding £924 per month. This is 14.9 per cent higher than a year ago.

In London July’s average of £1,273 pcm is higher than the previous month’s figure, but the market in the capital is down 0.7 per cent year-on-year. It was the only area of England and Wales to post an annual fall and remains below the £1,301 recorded in September 2015.

The average gross rental yield for properties in England and Wales continues its general downward trend and, while slightly up on June’s figure of 4.4 per cent, the 4.5 per cent recorded in July is still below the average yield of 5.1 per cent recorded in the same month last year. 

The north east had the highest yield at 5.5 per cent, despite being home to the lowest house prices in the country. A typical property in the region was valued at £118,821 in July but comparatively high rents pushed yields higher than anywhere else. In June the region had recorded yields of 5.1 per cent.

Across England and Wales some 9.01 per cent of tenancies had arrears of a day or more - a slight rise on June. However, looking at the longer-term, the proportion of tenants in arrears remains well below the all-time high of 14.6 per cent recorded in February 2010. 

On an absolute basis, the number of households in serious arrears – defined as two months or more – was 36,314 in July 2016. This compares with 36,207 cases in the previous month.