HOMELETS, one of Britain’s largest referencing networks, has reported that monthly rents are still rising across the UK.?
It says rents on new tenancies outside of London and started in the three months to April were on average 5.1 per cent higher than in the same period of last year – very slightly up on the 4.9 per cent recorded on the three months to March.?
In the capital, meanwhile, rents on new tenancies signed over the three months to the end of April were 7.7 per cent higher than a year ago, the third successive month that London has registered this quarterly rate of increase.
The regional figures for the East Midlands:?Average rent three months to April?£646;?Annual variation?+ 7.9 per cent
At Chelton Brown we have seen these increases first hand and can report our average rent as approximately £750pcm which is a huge increase. In 2014 I ran a report on our managed portfolio and reported the average rent to be in the region of £600. We have seen two-bedroom properties in this period increase from around £550pcm to about £700pcm. With mortgage rates low, this represents a great increase for our investor clients.
So while the landlord is being hit hard with tax and stamp duty, the rents have risen well to compensate and see portfolios bring in good returns.
Coupled with the increase in the capital value of property, buy to let is still a great investment.
If you would like more information about letting, selling or property investment, call Chelton Brown on 01604 603433.