Now Is the Time to Invest in Property As Rents Hit Record High
If you're considering expanding your property portfolio, now could be the perfect time.
New figures from a leading buy to let index show that rents in the UK hit a new high in September 2012 as the demand for rental properties continued to remain strong.
The latest figures available showed that rents hit a new high of £741 per month in September 2012.
UK rents overall were up 1.
1 per cent, eclipsing the previous record of £734 recorded in August 2012.
Keep reading to find out more about the excellent potential benefits that buy to let can offer you.
The average investment property should generate over £15,000 in the next year Data shows that rents climbed by 3.
2 per cent across England and Wales on an annual basis - the fastest annual increase since February 2012.
September saw rents rise in seven UK regions, with London and the South East showing the strongest increases.
Rents rose in these regions by 1.
7 per cent and 1.
9 per cent respectively.
The figures showed that London rents reached a record £1,092 per month - the fastest monthly rise since November 2010.
Rents have risen in London by 6.
2 per cent in the last year.
Tenant demand has strengthened on the back of a historically subdued mortgage market.
However, every pound monthly rents go up by is another pound that renters can't save for a deposit for their first home.
This is lengthening their stay in rented accommodation, and increasing competition in the private rented sector.
Islay Robinson, director of a London mortgage broker observed that mortgages are continuing to be difficult to obtain and demand for rental property has increased over recent years resulting in higher rents.
Clearly, this is great news for high net worth mortgage clients who are investing in good quality buy to let property in London and further afield.
Yields are increasing as rents rise, and with the property market set to recover over the next few years, high value mortgage clients are also set to benefit from capital growth.
Mr Robinson's observations were borne out by other data.
Landlords saw an average total annual return of 6.
2 per cent on a rental property in September 2012, up from 5.
5 per cent in August.
Mortgage Introducer reports that 'this represents an average return of £10,216 with rental income of £7,909 and a capital gain of £2,307.
' If rental property prices maintain the same trend as the last quarter, you could expect to make an average total annual return of 9.
2 per cent per property over the next 12 months - equivalent to £15,226 per property.
While tenants may be seeing their rents go up, this is good news for high net worth finance clients investing in properties for rental purposes.
Record rents are making property much more desirable as an investment and the returns can far exceed those of shares or cash savings on the right types of rental property.
New figures from a leading buy to let index show that rents in the UK hit a new high in September 2012 as the demand for rental properties continued to remain strong.
The latest figures available showed that rents hit a new high of £741 per month in September 2012.
UK rents overall were up 1.
1 per cent, eclipsing the previous record of £734 recorded in August 2012.
Keep reading to find out more about the excellent potential benefits that buy to let can offer you.
The average investment property should generate over £15,000 in the next year Data shows that rents climbed by 3.
2 per cent across England and Wales on an annual basis - the fastest annual increase since February 2012.
September saw rents rise in seven UK regions, with London and the South East showing the strongest increases.
Rents rose in these regions by 1.
7 per cent and 1.
9 per cent respectively.
The figures showed that London rents reached a record £1,092 per month - the fastest monthly rise since November 2010.
Rents have risen in London by 6.
2 per cent in the last year.
Tenant demand has strengthened on the back of a historically subdued mortgage market.
However, every pound monthly rents go up by is another pound that renters can't save for a deposit for their first home.
This is lengthening their stay in rented accommodation, and increasing competition in the private rented sector.
Islay Robinson, director of a London mortgage broker observed that mortgages are continuing to be difficult to obtain and demand for rental property has increased over recent years resulting in higher rents.
Clearly, this is great news for high net worth mortgage clients who are investing in good quality buy to let property in London and further afield.
Yields are increasing as rents rise, and with the property market set to recover over the next few years, high value mortgage clients are also set to benefit from capital growth.
Mr Robinson's observations were borne out by other data.
Landlords saw an average total annual return of 6.
2 per cent on a rental property in September 2012, up from 5.
5 per cent in August.
Mortgage Introducer reports that 'this represents an average return of £10,216 with rental income of £7,909 and a capital gain of £2,307.
' If rental property prices maintain the same trend as the last quarter, you could expect to make an average total annual return of 9.
2 per cent per property over the next 12 months - equivalent to £15,226 per property.
While tenants may be seeing their rents go up, this is good news for high net worth finance clients investing in properties for rental purposes.
Record rents are making property much more desirable as an investment and the returns can far exceed those of shares or cash savings on the right types of rental property.
Source...