The average monthly rent has decreased year-on-year across England and Wales in Q3 2023, according to new data from Fleet Mortgages’ BTL Rental Barometer.
The BTL lender revealed that the average monthly rent across the regions it lends in was slightly down from £1,380 in Q2 to £1,346 this quarter.
Rental prices ranged from an average of £678 per month in the North East to £2,457 in Greater London.
Regions in the North — North East, North West, and Yorkshire & Humberside — saw a slight drop in rental prices each month, while all other regions showed an increase on the previous quarter.
On the other hand, rental yields have risen on an annual basis for the third quarter in a row.
The total yield for both countries is up by one percentage point to 6.9% on the same quarter in 2022.
For the second quarter in a row, annual yields have grown across every region, with the West Midlands, East Anglia and the South East seeing an uptick of at least one percentage point.
Fleet attributed this climb to a boost in demand from tenants, a shortage of available supply, and a continued dip in house prices.
The only quarter-on-quarter lulls were seen in the North West and Wales.
Steve Cox, CCO at Fleet Mortgages (pictured above), commented: “Many of the themes that have been evident in the BTL and private rental sector throughout 2023 continue to strengthen.
“Overall, [Fleet Mortgages] remains totally committed to this sector and has been able to cut product pricing in recent weeks as swap rates dipped slightly, and the markets were calmed by the Bank of England’s decision not to raise bank base rate at its last meeting.
“More adjustments will be forthcoming if the rate environment continues to be calmer and, if product pricing can move more towards an average 5% rate, then we anticipate business levels will improve as landlords are better able to meet the affordability criteria that comes with today’s marketplace.”
