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Average yield on rental property increases…

May 29th 2013
By: Melanie Hollidge
Average yield on rental property increases…

Rents, which had previously suffered from a four-month downwards progression, have started to show signs of increasing. In England and Wales rents in March increased by 0.5% compared to February.

Six out of 10 regions experienced higher rent rises. Unsurprisingly London experienced a 1.3% monthly rise, which is a 7.9% annual increase, resulting in the average London rent being £1,106 per month. According to research from LSL, rents have increased by eight times faster than the wages in the past year.

The total amount of rental return rose by 6.3% in March, which equates to an average return of £10,329 with rental income of £7,751 and a capital gain of £2,578. The average yield on a rental property experienced an increase over the past year, from 5.2% to 5.3%.

If you are looking to invest in a rental property or you are already a landlord looking to increase your property portfolio, then why not pop into your local branch of Goodfellows and our team will be able to offer you help and advice based on their local knowledge of the area.