With available, let-able UK property at a low and demand for it at a high, it is not surprising average rents throughout the country went up by 1% in June, the highest level since 2008.

The average provincial rent now stands at £673 pcm, with a London average of £942; rents in the North and North East rose a tad by 1.4% and 1.3% respectively whilst in the West Midlands it dropped a little (-1.7%).

Rental yields (rent income as a proportion of purchase price) also rose to almost 5% as BTL property prices fell a little (-0.25%) and, the annual increase slowed to 8%.

A landlord/investor would have typically enjoyed a healthy £19,000 per property during the past 12-months: a combination of c.40% from the rental income with the balance as capital growth.

Commenting on these statistics, David Brown, Commercial Director of LSL, said,The seasonal pick-up was exaggerated by the squeeze in the supply of rental accommodation. Although landlords weren't clobbered as badly as feared, it is possible that some left the market in the run-up to the Budget and concerns over the new Capital Gains Tax rate dampened the number of new investors entering the market in June.

 

What We Say ~ Since the Emergency June Budget we now know that only higher rate tax-payers are effected by the higher CGT level (see Blog and News, Capital Gains Tax, 22nd and 23rd June 2010).

 

Also, more BTL funding is becoming available as more lenders return to the market (see Blog and News, Banks Lending Again To BTL Sector, 6th July 2010). 

 

When a property is bought from our website saving 25% of market value, typical rental yields of course will rise by 25%. This means you enjoy 6.6%pa, rather than the average 5% on the same property, taking into account its full market value.  

 

So a £100,000 property only costs your £75,000 plus you enjoy a substantially higher rental yield!  Another advantage of acquiring our BMV property is that they tend to be located in high-demand rental areas, so letting should be quicker providing you with more immediate and ongoing income.

 

Check out our website for examples of Available, Reserved and recently Sold property.

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