View more on these topics

Average UK rents up by 0.6% in April

The average rent in the UK rose by 0.6% to £663 per month in April, 2.2% higher than a year ago, according to the latest Buy-to-Let Index from LSL Property Services, which owns the UK’s largest lettings agent network, including national chains Your Move and Reeds Rains.

Rents have risen for the third successive month and are now just £25 per month lower than their peak in August 2008. Yields on buy-to-let property rose to their highest level all year at 4.8%, as rent increases narrowly surpassed slowing house price inflation.

The monthly increase in house prices for the average rental property slowed to 0.4% in April – a drop from the 2.1% increase seen in January. 

The total return from investing in buy-to-let over the last twelve months reached 12.8%. The average landlord would have made £19,765 in the past year, £7,115 in rent, and £12,650 in capital appreciation. This is the fourteenth consecutive month that annual returns have improved.

Improved annual returns have been supported by a second consecutive month of strong performance from tenant arrears. £220.3m of all rent in the UK was unpaid in April, a drop of £7m from March. This represents just 9.7% of all rent, the lowest figure since LSL Property Services plc began compiling the figures two years ago.

David Brown, Commercial Director of LSL Property Services plc, says: “Despite the distraction of the election, the buy-to-let market has gone from strength to strength, and landlords have seen their highest rents and yields this year. The UK’s political uncertainty surrounding the hung parliament – and its potential impact on the economy – will continue to depress demand for house purchase. With transactional levels subdued, the private rental sector will play an even more pivotal role in providing accommodation for hesitant buyers, and we expect tenant demand and rents to be boosted in the medium-term.”

Brown adds: “Not only has the buy-to-let market emerged from lingering effects of the recession, but landlords are now within touching distance of the record rents they achieved before the downturn. Supply and demand imbalances have corrected, and landlords are now getting a few pounds less each per month than they did at the peak of 2008.”


Details emerge about Mortgage Times’ debt

The extent of The Mortgage Times Group’s debts were revealed last week in documents filed at Com-panies House. The network, which went into administration on February 16, owed unsecured creditors more than £3.2m. Papers signed by the network’s director Paul Carmody on April 1 show it had assets of £378,500 that were made available to […]

Deficit will push up mortgage costs

The Association of Mortgage Inter-mediaries has warned that the budget deficit will continue to drive up the cost of mortgage lending. It says the size of the deficit will require a squeeze on public spen-ding and a widening of the tax net, if not an increase in tax. AMI predicts that gross mortgage lending will […]


Network directors deserve credit for preserving our jobs

Having read with interest the comments made on Mortgage Strategy Online in the past few weeks regarding Home of Choice I think it’s time to applaud the directors. They have done a good job in bringing the company back from the brink and safeguarding the livelihoods of those who worked under the Home of Choice […]


Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.


News and expert analysis straight to your inbox

Sign up