Rents rose at the fastest rate in a year in August, up 1.2%, and soaring to a record £1,025 per month in London.
Average UK monthly rent in August was £713 with a 5.2% yield, up from £705 in July, and £686 in August last year.
The figures from the latest buy-to-let index from LSL Property Services, recorded that the bulk of the UK experienced rent rises between July and August. London saw 1.5% hikes, while the South East saw 2.1% rises.
Only the East and West Midlands experienced a decline, with prices slipping 0.4%.
David Brown, commercial director of LSL Property Services, said: “Total annual returns took a turn for the better in August, following an uptick in rental property values in the past few months. However, for landlords able to invest in London, the returns are looking even stronger.”
However, during the same period, unpaid rent during August came to £300m, from £251m the previous month. LSL said this could be a seasonal phenomenon.
joanna.bourke@estatesgazette.com
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