Landlords in the East of
England are reaping the rewards of strong rental and house price growth in the
region over the past year, according to the latest Rightmove Rental Trends
Tracker.
Rightmove’s new total returns
calculation, using the largest rental property data set in England and Wales,
takes into account the area’s capital price growth over the last year and the
average rent a landlord would have collected in that time. This identifies the
locations where buy-to-let investors have seen the highest overall return on
their investment.
Places in Essex and
Hertfordshire make up seven of the top 10 investor hotspots, with Cottingham in
Yorkshire being the sole appearance from the north. East of England’s annual
rental growth racing ahead of the other regions has helped contribute to this
strong total return on investment, up 6.4% on last year compared to 4.5%
nationally outside of London. In the past three months rents have risen by 2.0%
in the East of England, with only the East Midlands reporting a higher increase
at 2.1%.
Sam Mitchell, Head of Lettings at Rightmove, comments: “We’ve
been reporting high tenant demand for rental property in Essex for a while now,
so it makes sense that it should feature strongly in our new total return on investment
league table. Investors and tenants who’ve been priced out of London and the
South East have looked for better value areas in the East, and it seems they’ve
both found a winning formula. For example, if you look at the top 10, six of
the areas have average asking prices below the national average, making it
affordable for buy-to-let investors. From a tenant affordability perspective
the East of England’s average rent for a two bed is less than £900 a month,
compared to over £2,000 in London.”
Figures are supplied form rightmove and based on 2 bedroom homes.
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