While Christmas is a traditionally quiet time in the property market, the latest rental figures from Your Move show that 2018 ended with quiet growth in many areas.
Rents held up in December in 10 regions surveyed, compared to November, with the West Midlands recording the highest rise of 0.5% to a new average rent of £630. Rents in England and Wales were up by just 0.1%, but year-on-year the news is more encouraging with a hike of 1.8%.
Yields stay strong
Rather than tailing off at a time of year when priorities can lie elsewhere, rental yields also performed well. All regions showed the same yields in December as in the previous month, with the national average staying at 4.3%.
For the best performing yields around the regions, look to the north, where the north-east and north-west finished the year with the highest figures – 5% and 4.8% respectively.
The East Midlands recorded a small rise in yields on a yearly basis to 4.2%, but Wales, the north-west, the West Midlands and the East of England all saw their yields fall slightly over the course of 2018.
Tenancy arrears on the rise
Tenancy arrears showed a marked rise in the run-up to Christmas. The report showed 10.5% of all tenancies ended the month in arrears, up from 8.1% in November but that was a trend “that often occurs at this time of year” according to Your Move.
“While the rental market tends to wind down as we reach the end of the year, there were still some positive advancements this year, with prices rising in all but two regions,” said Martin Alderton, National Lettings Director at Your Move.
“While landlords in most areas saw their yields squeezed in 2018, there was good news as returns held firm between November and December.”
Rents in London remain far and away the most expensive in the country, running at an average of £1,263 despite a year-on-year fall of 0.8%.
Your Move regional breakdown:
