The latest Your Move buy-to-let index revealed that the average monthly rent for privately rented accommodation was £845 in October 2017, a rise of 2.4% compared to the same period in 2016.
The East of England had the highest rental growth, with rises of 6% and an average rent of £887.
The typical rental yield for landlords in October was 4.4%, the same as it was in September. Properties in all regions of the UK had smaller returns than 2016, when the average rental yield was 4.8%.
Martin Alderton of Right Move said:
“As we approach winter, the heat has been taken out of the rental market and price growth has slowed. While prices in most areas have continued to rise, it has been at a slower pace than we had been used to in recent years.”
Letting agents have reported that the number of rented properties they are handling has dropped in October to a 12-month low. A survey of letting agents found that each letting agent branch had an average of 182 rented properties in October, compared to 189 in the previous month.
October is generally a slow month for the rental property sector with both supply and demand dipping. The government’s decisions to scrap stamp duty for first time buyers on homes costing less than £300,000 could mean more renters can purchase their own homes.
By the new year, more landlords are expected to apply for commercial mortgages to purchase buy-to-let properties.