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Rising rent costs spark increase in buy-to-let profits


01-13-2014

By The Sentinel 

The profits from renting are on the increase.

The profits from renting are on the increase. 

B UY-TO-LET landlords have seen returns approaching nine per cent over the last year, according to new figures.

Across England and Wales rents have continued to rise and now stand at an average of £753 per month.

This has seen a landlord's average return reach £14,592 due to rental income of £8,243 and capital gain of £6,349 – an 8.9 per cent rise.

At the same time buy-to-let has also become a less risky and easier proposition as improving financial fortunes among tenants is reducing the amount of late payments.

The combined late rent on all properties in England and Wales fell to £228 million in November, more than £20 million down on the previous year.

This saw the percentage of tenants in arrears fall to 6.6 per cent.

The date has been collected by Newcastle-upon-Tyne company LSL Property services.

Commercial director David Brown said: "Over 12 months the availability and affordability of buy-to-let finance has achieved a quiet revolution with a very real effect on the private rented sector.

"Demand for homes to rent is still soaring, yet heavy investment by landlords in 2013 has brought rent rises in most areas below inflation.

"In 2014, one thing will remain certain – demand from new tenants will continue to grow.

"Supply of new homes to rent will be critical in maintaining relatively affordable annual rent rises, compared to rampant house prices."


www.stokesentinel.co.uk

 

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