Buy To Let Updated:
Increased demand for rental accommodation has seen the average monthly rent in the UK rise for the fourth consecutive month.
The average rent rose to £725 in July, an increase of 1%, surpassing the previous high of £720 per month last October.
The latest findings from LSL Property Services reflect the steady increase in demand for rental properties from people unable to purchase their own home due to affordability and lending constraints.
Whilst mortgage lenders are turning away would-be borrowers, landlords are reaping the benefits by charging higher rents.
The surge in demand from tenants has seen average rental yields grow to 5.3%, an increase of 5.2% compared to June. The average total return on a rental property also increased last month to 4.5%, representing an average return of £7,459.
With rental returns so high, it is thought an average investor in England and Wales could potentially make a total annual return of 8.3% per property over twelve months, equating to £13,647 a property.
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