British buy-to-let landlords have been boosted by the news that the private rented sector is continuing to thrive.
Averagely monthly incomes for buy-to-let investors rose substantially during the past month, with data from a report by Your Move and Reeds Rains showing the quickest month-on-month rise since 2009.
According to data from the investigation, the average rental income per property for landlords has hit £800 per month for the first time. Month-on-month, average rental prices rose by 1.9%, rising from £789 to £809 per month.Year-on-year, a rise of 6.9% was the fastest rate of increase recorded on an annual basis by the firm.
‘Just when you think the rental market is accelerating at full throttle, it finds a way to shift into a higher gear,’ commented Adrian Gill, director of estate agents Reeds Rains and Your Move. ‘We’re seeing rent rises manage to hit record breaking speeds on both monthly and yearly time frames as far back as our data can go.’
Buy-to-let returns rise again in July
A possible reason for the substantial growth at present could be two-fold. Young people are aiding the growing demand for rental property, largely down to the convenience and freedom that renting offers them. Additionally, increased competition amongst tenants, brought about by a lack of affordable housing, has also seen a rise in applications to landlords.
Another rise in rents will give many landlords the incentive to invest more money into further properties and add to their existing portfolio. The threat of an interest rate rise early in 2016 could lead to a surge in activity during the coming months.