Buy-to-Let Returns Growing

Have you seen your rental yields rising recently?

According to a new study, buy-to-let returns are increasing in three quarters of the UK.

Landlords now receive an average monthly rent of £874. However, the most active time of year for the private rental sector has ended; September sees students moving across the country into rental accommodation.

Buy-to-Let Returns Growing

Buy-to-Let Returns Growing

The industry could be strengthened by the fact that after university, many graduates are staying in rental housing, as they cannot afford to buy a home.

It is thought that landlords are experiencing higher returns now than a year ago.

The HomeLet Rental Index shows that nine out of 12 UK regions witnessed annual rent price rises in November.

The report reveals that the average landlord earns £874 in gross rent per month from each property. Homes in Scotland are performing the best in the UK, as rents increased by 11.7% during the year.

Typically at this time of year, prices fall slightly after the high figures seen in September/October. However, HomeLet says that its latest research proves that the industry has underlying strength.

CEO of the Barbon Insurance Group, of which HomeLet belongs, Martin Totty, comments: “The outlook for the private rented sector remains positive for several reasons: the pace of house building is unlikely to have a significant effect on the supply of property to buy or to rent in the short term; high house prices; and a mortgage market where lending criteria remains constrained, are combining to ensure that the demand from tenants needing rented accommodation remains strong.”

Further research from Knight Frank and Savills found that many people are choosing to live in rental accommodation, despite being able to buy their own home, as renting is more flexible.

Are you seeing a rise in renters and is this pushing up your rental returns?

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