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Latest Buy-To-Let index…

October 28th 2014
By: Jon

LSL Property services has published its latest buy to let index which indicates that  rents have hit a new high with a sharp slowdown in annual rent rises.
The average residential rent across Greater London has now reached an average of £1166 pcm.

Rent rise has slowed to 2.2% in the year to August.  Nationally, the number of tenants in rent arrears has decreased to 7.2% down from 8.5% last September.
Increasing house prices now mean that Landlords’ gross returns reach a record 13.4% before mortgage or maintenance costs.

David Newnes, Executive Director of Estate Agency at LSL Property Services commented “Landlords have many costs to consider, which always makes the reality of profits rather different from gross headline figures.  But a record for gross returns is encouraging news for landlords’ finances and the prospects for further investment in new homes to let.
Favourable conditions for landlords have all come at the same time – low interest rates, steady growth in purchase prices and a solid underpinning from rental yields.  Caution is always a vital consideration as landlords look to let new homes.  But now the prospect of interest rate rises could be even further off, landlords will be able to continue growing their portfolios just as easily for some time.  That will be good news for tenants too.”