UK August Rents Second Highest on Record

Average rents across England and Wales throughout August 2013 were only £1 behind the all-time record, set in October 2012, according to the LSL buy-to-let index.

UK August Rents Second Highest on Record

Monthly rents in August hit an average of £743, rising 0.7% in the month since July, determining also that year-on-year average rents have surged by 1.3%.

Rents in the South East posted the fastest month-on-month increase of all, up 2.0%, while Welsh rents were 1.0% higher and the North West surged 0.9%.

Meanwhile, the fastest annual increases were seen in London, where they rose 4.8% in the last year, while other high-flyers included Wales surging 2.3% and the East Midlands increasing by 0.9% since August 2012.

Gross yields on a typical rental property remained steady at 5.3% in August. However, when void periods between tenants and capital accumulation are considered, total annual returns on an average rental property rose to 6.2% in August, compared to 5.6% in July.

The report by LSL also predicts that if rental property prices continue to rise at the same pace as they have throughout the last three months, returns could be as high as 13.1% over the next 12 months, equivalent to £22,065 per property for buy-to-let landlords.

The pace of new lettings also increased rapidly throughout August as the number of new tenancies rose by 8.8% compared to July, determining that there are now 13.7% more tenants this August when compared with last.

The reliability of tenants also rose in August with rental arrears dropping by 10 million from 273 million outstanding in July, to 263 million in August.

The results from this index produced by LSL are based on analysis of approximately 20,000 properties across England and Wales.

To read the report in full click here


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