Yields expected to hit 5.5% as rents reach new heights
Rents have never been higher in the majority of regions in the UK, according to latest figures from the Buy to Let Index from LSL Property Services.
Landlords with rental properties in Wales, the West and East Midlands, North West, Yorkshire and Humber, London and the South East have never before experienced higher rents than they are currently.
The average rent for the UK is also at an all-time high. Now standing at £757 per month, rents have seen monthly and annual increases of 1.8% and 2.1% respectively. Tenants are now paying on average £13 more than they were in October 2012 when the previous all-time record was set.
Out of the ten regions of the UK nine saw an increase in rent between August and September; the highest occurring in the South East (3.3%), North West (2.7%) and West Midlands (2.6%). The only region who saw a decline was the East of England (0.8%).
These record breaking figures mean many landlords are benefiting from strong yield growth, something which many in the industry are expecting to continue and impressively so; LSL Property Services Commercial Director, David Brown, is predicting yields to reach the lofty heights of 5.5% by the middle of the decade.
Rob Denman, Head of GW LET, comments:
“With personal finances still tight, landlords should remain realistic when setting rents. We also encourage landlords to undertake thorough background checks on all potential tenants to minimise the risk of rent arrears.
“GW LET is a fantastic resource for landlords. We can assist with the initial purchase of a property right through to tenant eviction and everything in between.”
Content correct at time of publication