29
Sep
Rental prices accelerate at their fastest pace in a year and have
risen a mammoth 12% in London!
The average weekly rent in England Wales rose by 1.2 per cent to
£713 last month, surpassing the previous record high of
£705, according to research.
The Buy-to-Let Index from LSL Property Services revealed the
largest monthly increase since August 2010 as potential house
buyers struggle in the face of high deposit demands and are forced
to rent.
With annual rent inflation at 4 per cent, the average rent is
£27pcm higher than August 2010. The average rental yield for
landlords hit 5.2 per cent in August.
Rental market: The average rents and yields have been rising
steadily
Rents increased fastest in Wales and the South East, up 2.1 per
cent in the month. The only regions which saw a month-on-month
decreases were the West and East Midlands, with average rents
falling 0.4 per cent.
London saw the largest annual growth according to the LSL, with
rent up 6.6 per cent.
In the last year, average rents have risen in all regions except
Yorkshire and the Humber, where they have fallen 0.5 per
cent.
The total annual returns for rental properties - rental income
minus or plus changes to the property value - improved in August
after house price falls became less severe.
The average total annual return in August was 2.6 per cent, the
equivalent of £4,336. This breaks down as £7,626 of rent,
with a capital loss of £3,290.
If property values maintain the same trend as the last three
months, a property investor could expect to make a total annual
return of 10.5 per cent over the next 12 months, equivalent to
£17,381 per property, LSL said.