There's more good news for buy-to-let landlords as the average rent across the UK hits a two-year high of £867, according to the latest Countrywide Monthly Lettings Index.
Landlords continue to achieve good returns with yields remaining strong at an average 6.1%. But growth has slowed, with a rise of just 0.7% in the past 12 months, according to the survey of 50,000 rental properties.
Wales offers the highest yields at 6.6%, followed by the Midlands at 6.5%. The North (6.4%), East of England and Greater London (both 6.2%) all offer slightly higher yields than the national average.
Scotland and the South West offer the lowest yields at 5.8% and 5.7% respectively.
Monthly rents for all sizes of property also increased with one notable exception, four-bedroom properties suffered a 6.4% drop in rental income.
Countrywide group commercial director Nick Dunning said: “August is traditionally a busy period for the rental market with tenants, particularly families, wanting to move into their new rented accommodation before the start of the school term in September.
"However, demand is not being met by supply and currently there is a particular lack of family-sized properties available to rent, especially in the South of England.
"Improved conditions in the sales market are attracting reluctant landlords to sell these types of properties specifically in the catchment areas for good schools. With four or five tenants vying for every property, tenants need to act quickly. ”
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