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Rents across England and Wales have fallen below the psychologically important £800 mark, according to the latest Buy-to-Let Index from Reeds Rains.

Average rents now stand at £799 per month.This follows a month-on-month fall of 1.2% – down from September’s all-time record high of £816.

Despite month-on-month falls, rents have risen considerably over the course of the last twelve months. Across England & Wales annual rent rises stand at 4.0%, comparing November 2015 with November 2014. Taking into account CPI inflation of 0.1%, this leaves real-terms annual rent rises of 3.9%.

Rising property prices suppress rental yields to 5.0% – but capital gains push total returns to 10.9%.

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