Posts with tag: homelet rental index

Buy-to-let market remains attractive

Published On: April 27, 2015 at 9:58 am

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Categories: Property News

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New research has indicated that Buy-to-Let is still a highly attractive proposition for would-be landlords. Low savings rates and the volatility of the stock market remain two of the main reasons why investors are flocking into the buy-to-let environment, as is a great opportunity for them to become less reliant on their day-to-day employment.

Incomes

A study, conducted by PropertyLetByUs.com indicated that 40% of buy-to-let gain a substantial income from their property portfolio, with half saying that this is their main source of income. The study also revealed that just over a third of buy-to-let landlords have full-time jobs, with 5% stating that they worked part-time.[1]

Of those questioned, 50% of landlords said that they had a LTV of 20%, while 36% of landlords said that their LTV was 40%. One in five landlords said that they had rental yields of between 15-30% per year, while one in four said that their yields were between 5-10%.[2]

Managing Director of Property Let By Us Jane Morris, remains certain that the buy-to-let market is going from strength to strength. Morris said, ‘buy-to-let continues to provide an excellent return on investment, with many landlords able to take an income, as well as enjoying the capital growth of the property.’[3]

Buy-to-let market remains attractive

Buy-to-let market remains attractive

Rise

Research from the HomeLet Rental Index has shown that rents across the United Kingdom are 10.2% higher than this time last year. The average rent for a tenancy agreement in the UK so far is £902. This is in comparison to £819 during the same period twelve months ago. Similarly, rents are up in every region of the UK from 12 months ago, with the exception of Wales.[4]

 

With this said, mortgage rates are still at record lows levels, which in turn is assisting buy-to-let landlords to achieve more substantial returns.

 

[1-4] http://www.propertyreporter.co.uk/landlords/nearly-50-of-landlords-rely-on-btl-as-their-main-source-of-income.html

 

 

Rents continue to rise in the UK

Published On: April 22, 2015 at 3:23 pm

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Categories: Finance News

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New figures have shown that rents within the UK have continued to rise during the past twelve months.

Rise

Findings from the HomeLet Rental Index suggest that rents in Britain are now 10.2% higher than at this time last year. During the first quarter of 2015, the average rent for a tenancy was £902, in comparison to £819 during the same period last year.[1]

With the exception of Greater London, average rents across all of the U.K are 6.7% higher than twelve months ago. This is the strongest rate of growth since the formation of the HomeLet Rental Index in 2008.[2]

The largest increase in rental prices was evident in the South West of England, with rents 13.7% higher than in quarter one of 2014. Greater London and the South West of England aside, the South West has the highest rents in all of Britain, with rents averaging £851 per month.

Already in 2015, figures for quarter one suggest a further rise in rents, with ten out of twelve UK regions reporting a rise in prices from the previous month.

The full findings of the HomeLet Rental Index are indicated below:

Rents continue to rise in the UK

Rents continue to rise in the UK

 

Region Average rent 3 months to March 2015 Average rent 3 months to Feb 2015 Monthly
Variation 
Average rent 3 months to March 2014 Annual Variation
South West £851 £832 2.3% £748 13.7%
North West £671 £657 2.2% £635 5.6%
N. Ireland £583 £571 2.1% £562 3.7%
South East £893 £881 1.4% £847 5.5%
East Anglia £769 £760 1.2% £726 6.0%
East Midlands £605 £598 1.2% £571 5.9%
Greater London £1,427 £1,413 1.0% £1,310 8.9%
Scotland £631 £625 1.0% £587 7.5%
Wales £577 £576 0.2% £582 -0.9%
West Midlands £643 £642 0.1% £600 7.1%
Yorks & Humber £611 £613 -0.3% £571 7.0%
North East £520 £533 -2.4% £501 3.8%
Overall

UK average

 

£902

 

£889

 

1.5%

 

£819

 

10.2%[3]

 

[1-3] http://www.whathouse.com/news/article/5534b8334031b9560c580535/UK+rents+have+increased+by+10%2525+in+the+last+year

 

HomeLet Reveal Rent Rises and Falls Around UK

Published On: January 19, 2015 at 3:40 pm

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Categories: Finance News

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HomeLet’s Rental Index revealed that the highest rental price rises in 2014 were seen in Leicester, Southall, and Cambridge.

Respectively, rents were 45%, 38%, and 24% higher in these places in 2014 than 2013.1

However, Colchester, Croydon, and Brighton experienced the largest drops in rents in 2014, with prices on new agreements 24%, 23%, and 18% less, correspondingly.1

HomeLet also found that average rents around the UK were 6.6% higher than in 2013, as the average rent is now £867 per month.1

HomeLet Reveal Rent Rises and Falls Around UK

HomeLet Reveal Rent Rises and Falls Around UK

Chief Executive Officer of Barbon Insurance Group, Martin Totty, says: “2014 was predominantly a year for growth in the rental market with rental prices on average 6.6% higher than in the previous year.

“With property prices continuing to grow, and mortgage criteria tightening, the rental market represents a much more accessible option for house hunters than the property ladder. The demand for rental property is increasing, and we expect it to continue doing so in 2015 as large numbers of people are priced out of buying. As a result, we expect to see continued growth in rental prices across the UK as the New Year progresses, particularly as real incomes are starting to rise.

“However, the data also points to some big differences in rental market performance in 2015 from town to town, and city to city. The causative factor behind these differences is as simple as supply and demand.

Totty explains: “In locations such as Leicester, and Cambridge, demand for rental property is outstripping supply. By contrast, Croydon and some parts of Essex are benefitting from a relative boom in new property building, easing the pressure on the local rental market, and this is reflected by a drop in rental prices.”

HomeLet’s figures for December reveal a largely positive rental market, despite end-of-year seasonal steadying. Rents dropped in many parts of the UK, although annual figures for December depict positive growth in ten out of 12 regions.

Totty concludes: “The moderation in rental prices across the UK in December 2014 is broadly in line with the typical seasonal effect that often sees rental prices slow or move into negative growth towards the end of the calendar year.

“However, the annual comparison figures show that in all but two regions of the UK, rental prices are higher now than they were this time last year and this is a trend we expect to continue in 2015.”1

1 http://www.landlordtoday.co.uk/news_features/HomeLet-reveals-rental-market-hotspots