Rents in the South West of England grew faster than anywhere else in the year to July, increasing by 3.7% with the typical tenant now paying £686 per calendar month for their property, according to the Your Move Rental Tracker.
On a monthly basis, the South West was also the region to see rents rise faster than anywhere else, with an increase of 0.7% between June and July.
Prices in the East Midlands rose by 2.9% year-on-year to reach an average of £656 while in the East of England the average rent grew to £890, with a 1.9% annual increase.
Only London, Wales and the North East saw average rents fall.
The North East remains the cheapest place to rent a property in England and Wales with the average monthly rent falling by 1.3% to stand at £535, the biggest drop recorded in this survey.
In Wales prices dropped by 0.9% in the year to July, with the average rent now £588 per month.
In London rents fell by 1.2%, yet the capital remains the most expensive place to rent in England and Wales. The average tenant pays £1,271 for their property, although this figure varies depending on where in the capital they live.
Northern regions offer highest yields
The report also found that every region achieved the same percentage returns as a month ago.
Properties in northern regions once again earned higher returns than those located in the South. An average investor in the North East enjoyed an annual yield of 5% in the year to July.
Landlords in the North West were equally successful with an average return of 4.8% in the time period. In Wales the typical yield was 4.6%.
London continued to offer the smallest percentage returns at 3.2% although, as prices in the capital tend to be much higher than northern areas, the absolute returns here can be far greater.
Across all of England and Wales, landlords enjoyed an average yield of 4.4% in July, the same as in June.
Tenant arrears rise in July
Tenant arrears between June and July increased hitting its 2018 high, the report found.
Some 9.7% of all tenancies had some form of financial difficulty this month. This is higher than the 9.1% recorded in June and the 9.2% in May.
However, the proportion of tenants in arrears remains well below both the recent and all-time high recorded by Your Move.
The all-time high of 14.6% was recorded in February 2010 while the most recent high of 13.7% was found in July 2017.
Martyn Alderton, national lettings director at Your Move, said: “One benefit of the slowdown in the London rental market has been that it now shines the spotlight on other areas of England and Wales.
“The South West of England has been the standout region in the last year, with rents rising consistently in areas of high demand. Prices in the East Midlands and East of England have also increased strongly, showing there is demand for rental properties outside of London and the South East.
“London continues to have the highest rents, but there are still good pockets of value around the capital, particularly in areas further from the city centre.”