Average rental costs continue to increase - Buy To Let - News - Moneyfacts


Average rental costs continue to increase

Average rental costs continue to increase

Category: Buy To Let

Updated: 17/05/2013
First Published: 17/05/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The average price of renting a property in England and Wales increased annually by 3.9% during April, with rents rising across all regions for the first time since November 2011.

The latest Buy-to-Let Index from LSL Property Services found the average rent currently stands at £736, with London experiencing the largest year-on-year increase of 7.6%.

Landlords are responding to the upturn in the rental market and high tenant demand by increasing their property stock by around 10% since 2008. The average yield on a rental home rose to 5.3% last month, compared with 5.2% in April 2012, with landlords reaping an average capital return of £1,872 per property.

According to the report, a typical landlord in England and Wales could make a potential annual return of 5.7% per property over the next 12 months, equating to £9,496 per property.

David Brown, commercial director at LSL Property Services, said: "Rents everywhere are higher than a year ago, at a time when pay has crept up at the slowest rate in years, but some regions are suffering even more than others.

"Despite a year-on-year increase across the board, the divergence between London and the rest of the country is continuing, even if a little slower than last month."

What next?

Compare BTL mortgages
Read our buy to let investment risk guide

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Number of parent landlords on the rise

The cost of renting is on the rise, but would it cheaper if you were renting from your own parents? Many children of property moguls will hope so, and with the number of parent landlords on the rise, it’s something more and more could benefit from.

Landlords: BTL mortgage rates are still falling!

The cut to base rate has had a welcome impact on mortgage rates, and it isn’t only residential borrowers who are benefiting: buy-to-let (BTL) investors are continuing to enjoy a fall in rates, particularly those looking for a longer-term deal.

Landlords – are you embarrassed about being one?

Becoming a landlord is often touted as a way to secure valuable income and build a nest egg for the future, yet once that dream has been realised, many property moguls are actually embarrassed to admit their vocation.