Buy-to-let owners across the whole country have found themselves in a strong position over the past few years, with this market having benefited from strong levels of demand and a continued customer base, and it seems that this is a reality that is continuing throughout 2014 according to the latest reports.
Figures released by Move With Us have shown that in May, the average cost of renting a house or flat across the UK as a whole rose to £1,006 per month.
It marks the first time in history that the cost of renting has crept beyond the £1,000 per month mark, and shows how demand is helping to push returns up for landlords nationwide.
These latest stats show that there has been little fall in the levels of demand that were recorded at the end of 2013, when Countrywide reported that some ten potential tenants were after every rental property that came to market across the country.
“This record milestone emphasises that in certain regions across the country there isn’t enough supply to keep up with demand in the private rental market. The regions around the capital have witnessed substantial growth in the last 12 months and have made a significant contribution to the national average rent going past £1,000 for the first time,” said Robin King, director of Move With Us.
The company went on to say that this latest news is a real positive for landlords nationwide. The rising cost of rent will mean an impressive increase in yields for those who make a purchase of a home.
And with yields already sitting at around the seven per cent mark, it would be a bonus for anyone already enjoying the strong rental market across the UK at the current time.
Move With Us believes that the constant rising of rental prices could also mean an increase in house building in coming years, which could help ease the supply and demand issues that affect the market.