Yorkshire catching up as rental prices rocket 12pc

The rise has seen the region, which was previously the cheapest place to rent property in the UK, begin to catch up with other areas.

An increase to an average rental price of £629 has seen Yorkshire and Humber close the gap to prices in the West Midlands by 80 per cent in just one year.

Among the other regions experiencing sharp price rises was the North East of England, where rents increased by an average of £73.

Robin King, director of residential property firm Move with Us, said: “Generally, demand is increasing for higher quality rental properties and tenants who need to rent for longer periods due to more stringent mortgage requirements.

“Add to this falling house prices sapping homebuyer confidence and lower starting rents. In combination, these factors suggest more intense upward pressure on rental prices in the North East and Yorkshire and Humber.

“Gross rental yields remained at five per cent throughout Britain in 2012 with the majority of regions returning an average yield of around four per cent. Returns remained stable as both house prices and rents have increased at similar rates. Overall, this suggests that buy-to-let properties were a worthwhile investment in 2012.

“Higher property prices and strong demand for rental property meant that London continues to lead in terms of yield, with returns averaging at 6.1 per cent. However, the lower entry costs in the North East and strong yield make it an interesting alternative region for investment.”