02 Oct Landlords reap the benefits of record rental prices
The outlook is rosy for buy to let landlords as rentals rise to near record levels and house prices sour. It is predicted that within the next twelve months a property could generate an average return of 13% which is more than £22,000 per property according to LSL Property Services.
In England and Wales rents are just £1 off their highest average at £743 per month with a recorded 1.3% rise since last August and 0.7% rise on July 2013. According to David Newnes of LSL Property Services if property prices continue to growth an average buy to let investor could make a total annual return of 13.1% or £22,065 per property that own.
Official figures state that there is almost a 10% rise in house prices year on year in London due to the demand for properties in the city and the average rent for the capital currently stands at £1,216 which us a huge 4.8% higher than 2012!
However, Wales experience the second largest increase in rents with a 2.3% increase taking the average rental price to £523. These figures are based on the rents achieved since 2008 on almost 20,000 properties of LSL Property Services.
£5 billion pounds of mortgage money has been lent since the credit crisis and this has since risen an extra £1.1 billion since this time in 2012. Landlards have accounted for one in ten mortgages taken out within this time. If you would like to become a buy to let landlord, PPS have many investment properties for sale right HERE. Simply sign up and feel free to call or email with any enquiries on 0151 201 2714 or firstname.lastname@example.org.