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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 It is now over 6 months old so the content may be out of date.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."

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