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Residential buy-to-Let

Rental rates in England and Wales increase

Author: Gemma

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The latest data from LSL Property Services has revealed that rental rates in both England and Wales have increased by 1.6 per cent year-on-year.

According to the research, average residential rental rates now stand at £753 per month, despite the expected seasonal fall.

The Buy-to-Let index shows that rental rates have increased by as much as 1.6 per cent over the last 12 months.

It was also revealed that landlords have seen a record 8.9 per cent total return over the course of 2013, coming in at a total of £14,592.

Furthermore, there was also an increase in the growth of annual lettings activity, with a 1.5 per cent rise in tenancy agreements across England and Wales when compared to November 2012.

David Newnes, director of LSL Property Services, said: “Over 12 months the availability and affordability of Buy-to-Let finance has achieved a quiet revolution with a very real effect on the private rented sector. Demand for homes to rent is still soaring, yet heavy investment by landlords in 2013 has brought rent rises in most areas below inflation.”

Unsurprisingly, it was London that experienced the highest rises in rental returns, increasing by 4.4 per cent over the 12 months since November 2012. The south west and south east also experienced improved rates of 3.4 per cent and 3.2 per cent respectively.

“In 2014, one thing will remain certain and that is that demand from new tenants will continue to grow. Supply of new homes to rent will be critical in maintaining relatively affordable annual rent rises, compared to rampant house prices,” Mr Newnes continued.

With the government focusing on house building in recent times to stimulate the economy, there are a number of new build properties for potential investors to get their hands on.

It’s important to survey the local market before buying a property though. Consider local employment rates, educational opportunities and possibilities for growth to really capitalise on your residential investment.

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