A sustained level of demand over the past few months has helped to push rental prices in the UK higher yet again, with investors in this type of asset once again enjoying some of the best yields around.
According to the latest official data released by the Office for National Statistics, the average cost of renting a property has now risen by one per cent in the 12 months to the end of September 2014. The data shows that the price for rental property grew by one per cent in England, 1.4 per cent in Scotland and 0.4 per cent in Wales.
Although Scotland showed the greatest overall increase, it was England where the most consistent level of growth has been seen, with the data showing that in the year to September, all regions south of the border welcomed increases in rental prices.
London welcomed the highest rate of growth with a 1.5 per cent rise, but even when the capital is excluded, the 0.8 per cent annual rise is still impressive.
As well as analysing the past 12 months, the The Index of Private Housing Rental Prices (IPHRP) highlighted some interesting trends in recent years for the private rented sector.
It shows that between January 2006 and November 2009, rental prices were climbing, before they fell for the 11 months between December 2009 and November 2010. Ever since then, it has been positive after positive for the rental market, with year-on-year growth in prices consistent.
This continued strength indicates that the appetite for investors to buy into this sector is well placed with yields continuing to grow for almost four years. It could be a reality that continues for years to come as well. Recent figures have shown that demand to buy homes has fallen in the past few months, which can only push up the number of people looking to rent properties.
New investment options from the likes of Experience Invest can be the best way to get into the market with a passive income.
Purchasing units in newly constructed apartment blocks allows for a lower entry price, while this form of investment allows those putting their money into it to get their hands on a fully-managed property, meaning it is minimum contact.
Experience Invest also offers investors guaranteed returns for a set number of years, which allows buyers a sense of security in their income for a specified period.