Once again, figures reveal that the property market is riding the wave of economic recovery.
The pace of growth in rent values has risen at twice the yearly rate of weekly earnings, the latest Buy-to-Let Index from LSL Property Services shows.
The average rent in England and Wales is now £753 a month, an increase of 1.6% from November 2012. This is double the growth rate recorded in salaries, which have improved by just 0.8% over the 12-month period to £1,941 (before tax) a month, according to statistical data.
Rent values keep trending higher than the previous year despite the 0.7% monthly drop recorded by the Index in November. The seasonal decline was registered in eight out of ten regions across England and Wales, with the most pronounced fall being in the West Midlands, at 2.6%. The South East saw rents down 1.8% compared to October, while the third sharpest decrease was recorded in the East of England, at 1.3%.
The South West exhibited the most solid monthly increase, seeing rents go up 1.1% to £657. Rents in Wales added 0.2% on the month to £565.
Year-on-year, the strongest rise in rent levels was observed in London, where they were 4.4% higher than in November 2012. In the South West, rents gained 3.4%, whilst in the South East they were 3.2% greater than 12 months ago.
Lettings activity also improved in November, resulting in a 1.5% annual rise in new tenancies across England and Wales. In monthly terms, new tenancy numbers slid 6.3%.
The study predicts that if the current uptrend in rents is maintained, buy-to-let-investors could generate a total annual return of 10.5% over the coming year, or £17,294 per property.
Great news for investors to go into the New Year with.