Increasing income for Landlords

March 3rd 2014
By: Jon

If you’re looking for a good return on your property investment, have a closer look at the London property market.  Landlords in London are able to charge double the rent charged in the rest of the country according to BM Solutions who are one of Britain’s largest buy to let lenders.  In the latter part of 2013, average monthly London rents were £1,417 compared to £701 in the rest of the country.  The figures also showed Londoners were being charged 10.5% more than this time last year (an average of £135 a month).  The rest of Britain saw rents increase by 4% (£27) a month.
BM Solutions, part of Lloyds Banking Group indicated that landlords had seen their income from monthly rents increase.  In the latter half of 2012, new investors anticipated a 5,6% return on the purchase price of the property, in 2013 it has fallen very slightly to 5.5%.
Deposits vary tremendously across the country with landlords in the north of England typically having just under £28,000 in cash, and London landlords putting down an average of just under £120,000 – more than four times as much.
In the second half of 2013, the number of buy to let property purchases was 46,403 – more than double the amount in the first half of 2010.  This is still currently below the highest level of 96,940 which was recorded in the second half of 2006.

Are you a landlord or thinking of becoming one and have any questions? Call one of our experts on 020 8687 0077 for a chat, we will be very happy to help.