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Residential buy-to-Let

UK property investment returns continue to rise

Author: Gemma





According to the latest HomeLet Rental Index, returns from UK property investments were 10% higher in the first 3 months of 2015 than the same period last year.

This means that the average UK rent for tenancies in April 2015 was up 9.7% (£935pcm) when compared to April 2014 (£852pcm).

In London, the average rental values for new tenancies reached £1,436pm in Q1 2015– up £100 when compared to the same period in the previous year.

And it’s not just London which is experiencing rising rents.

The April Index shows that in the 3 months to April 2015, average rental values increased in 11 out of 12 regions across the UK.

Only Wales witnessed a reduction of 1% when compared to last year.

This means that excluding London, the average UK rental value in Q1 2015 was £720pcm – up 7.4% when compared to the previous year (£680pcm).

UK property investment is showing little signs of slowing down and with the uncertainty surrounding the general election now over, the market is expected to pick up pace throughout the rest of the year.

It is no secret that there is a housing shortage in the UK. Landlords in the private rental sector are capitalising on this shortfall and, with figures from the English Housing Survey showing that tenant demand is at an all-time high, landlords may continue to receive rising returns.

Rising house prices

The latest monthly house price report from The Royal Institute of Chartered Surveyors has shown that UK house prices in April increased at their highest rate since August 2014.

UK property investment has witnessed a flurry of activity since the result of the general election, with over £100 million worth of luxury property in London sold since the announcement of the results.

It would appear that investor confidence has been restored after the slight slowdown witnessed in the run-up to the election.

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