Spring comes early for Landlords as rents rise

With the south producing stellar returns, the midlands are broadly in line with the national average, while northern regions are lagging far behind. A landlord investing a year ago in London would have made an average 16% return, equivalent to over £33,000 on a typical property, while one in the north east would barely have broken even, scraping in just £1,700.  

The total return from investing in buy-to-let over the last twelve months reached 10.6%, the highest level since LSL Property Services plc began compiling figures two years ago.  This is despite a slight drop in house prices in February.

Given the slowdown in the pace of house price increases, a landlord investing today can expect to make an annual return of 8.5% over the next twelve months[i], with a little more than half of that return coming from income and the balance from capital appreciation.  This is equivalent to £14,000 on a typical property.

Have your say on this story using the comment section below.

0 thoughts on “Spring comes early for Landlords as rents rise

  1. Helen Clover

    This period of rent rises is part of the natural process which will restore an equilibrium in the Rent vs Buy dilemma.
    As more people have been dissuaded from buying during the credit crunch & with added fears of job loss, they have been making the decision to rent. The rental stock has depleted as Buy to Let landlords have slowed down on their investments; due to lack of finance and, what supply there is over subscribed.
    The laws of supply and demand have inevitably forced the price of rented property up. As renters perceive that rented dwellings no longer represents good value they will switch and consider buying. Economics in action!