Landlords have been raising rents during the summer to an average of £904, new figures show.
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Buy-to-let seized the opportunity to increase profits amid a rise in the number of tenants and on-going demand for more properties to rent.
Strongest growth found outside of London
In all, nine out of 10 regions across the country saw price increases year-on-year, according to the Your Move buy-to-let index.
Findings show that the strongest price growth took place outside of London and the South East this August, with the East of England and the North West among the regions growing fastest during the past year.
London continues to be the region with the highest average rent, at £1,282 per month on average, according to the research.
The South West was the only region to see a price fall in the last year, with average rents costing £540 a month.
Rental yields ‘continue to be squeezed’
However, despite the news about increasing rents, director of Your Move Richard Waind warned that the rental yields achieved by landlords continued to be squeezed.
The average yield in England and Wales stood at 4.4 per cent in August, the same as the previous month. However, it is down on the 4.9 per cent recorded at this point a year ago.
The figures come as landlords are seeing a reduction in the tax relief they can claim on mortgage interest - a move being phased in over four years.
Tenant enquiries on the up
Fortunately, tenant enquiries are starting to grow again, after dropping off following last year’s Brexit vote.
Mr Waind said: “Figures are returning to the levels that we would expect around this time of year, with August and September being the busiest months for lettings as students, graduates and families working in the education sector look for new properties.
“This recovery in tenant enquiries, combined with continued subdued supply of new listings in the wake of recent tax changes affecting landlords, has been a key reason for price increases in the last year and could push rents up in the coming months.”