Rental demand set to continue throughout 2015
A Positive UK rental market
Figures from the latest Homelet report show that average rents saw a 6.6% annual increase as strong rental demand continues across the UK.
According to the monthly report, the UK rental market saw positive growth overall throughout 2014, with the average rental cost in the UK at £867 per month. This is compared to the average price of £813 in the same month in 2013, an overall increase of £54 in a year.
Despite the usual slowdown of the property market in general over December and the winter months, the high demand for rental properties has seen a continued growth. Whilst there was a small decrease in month-on-month data, the fall in average rent was significantly less than what many experts predicted, and so the market research continues to forecast an increase to begin once again in 2015.
The latest buy to let index released from LSL Property Service largely coincides with the findings from Homelet, showing average rents in December suffering a slight dip of 0.1%, but shows an annual increase of 3%. The index determined the average monthly rent at £767 across England and Wales, an increase of £22 overall when compared to the same month last year.
It was also reported in the same buy to let index that the North West currently holds the highest yields across England and Wales, with an average of 7%. Other areas such as London and the South West didn’t perform as strong and plateaued at around 3 and 4%.
Average rents are were also up in many areas across England and Wales, including the North West. With Manchester and Liverpool named as buy to let property hotspots in a report by HSBC, the North West in particular looks set to continue to maintain a popular status for buy to let investors throughout 2015.
Comments from Sequre
Graham Davidson, Managing Director of Sequre Property Investment, comments on December’s Buy to Let Index: “One notable trend of December’s Buy to Let Index is that mortgage lending to buy to let investors has remained high.”
He adds, “Whilst this can be attributed to the fact that the MMR (Mortgage Market Review) excludes buy to let, it also shows that more and more people are choosing to invest in buy to let thanks to the strong returns and regular income that it provides. Tenant finances have also continued to improve thanks to a strengthening economy and a slowing rate of inflation.”