Member Article

Yorkshire rents underperform the rest of the country

The average advertised cost of renting a home in Yorkshire & Humberside has fallen below £600 a month for the first time in 2013, making the region the cheapest in Great Britain to lease a property, according to the latest Move with Us monthly rental index.

Although the trend for the area over the last year has been a 5.19% increase in rents, July’s drop of 1.21%, to £597, leaves it trailing a long way behind the national advertised average of £967.

Robin King, director of Move with Us, said: “Lower rental prices in Yorkshire is great news for tenants, but potentially not so good for landlords. The rental yield for the region currently stands at 4.26%, which is slightly below the average for Great Britain.

“Investors looking to achieve higher yields in this region should keep an eye out for good properties close to amenities with decent transport links, as these will attract a higher monthly rent. Looking outside the local area may also be an option for landlords looking to achieve higher yields as they can vary from town to town. “Yorkshire landlords can also carry out the usual improvements such as upgrading the kitchen, bathroom and garden to lift rental yield. Other, less obvious, things that tenants look for are a good power shower and a fast, reliable internet connection. Landlords have also been known to lure tenants and increase monthly rents with freebies such as free WIFI access or gym memberships.”

Rents in East Anglia, the South East and London continue to outperform other regions, with average asking prices of £899, £1,156 and £2,153 respectively - although London has suffered a second successive month of decline and is the only region to have lower levels than in July 2012.

Robin King added: “Overall, average advertised rents in the UK are stable with moderate growth, which has been the trend of late. Whilst rents in London are down compared to this time last year, they continue to isolate many tenants who are choosing to live outside of the city.

“As a result, the prominent commuter regions of East Anglia and the South East have increased again in July, as tenants look to access the capital’s work and social opportunities without the cost of a London property. With asking rents in these regions rising every month in 2013, buy to let investors are likely to keep a close eye on these areas as they could be potential yield hotspots.”

This was posted in Bdaily's Members' News section by David Gatehouse .