Average rents across the UK have again hit new highs, we reported in June increases and the same has happened again in July. The average monthly rent has now risen from £790 per month to £804 these rises represent the biggest monthly increases since 2009. Stunning figures indeed, the question is how long can this gone on? If you compare this to 2014 tenants are paying on average 6% more than they were 12 months ago and this is way above the inflation figure. All this is evidence of how lucrative the buy-to-let market currently is and it shows no sign of slowing down at all. East Anglia and the South East saw the largest increases but surprisingly the North of the country wasn’t too far behind especially Humberside. It is also very interesting to see how the Midlands region has reduced in rental income most analysts believe this is down the lack of long term employment in the area. With the prospect of higher mortgage interest rates on the way and the new tax changes for landlords letting agents are predicting even more increases in the future. Investment opportunity A large number of people in the UK are considering entering this market for many reasons. Buy-to-Let properties offer… -Interest only mortgages -Good potential returns on capital invested -Attractive mortgage interest rates -Potentially better returns than on offer at high street banks These are just a few of the reasons why people are considering the buy-to-let market. If you are thinking of entering this investment area you should seek advice as the mortgages and types available are numerous. Broadly speaking you will generally need a deposit of 20% or more, this varies from lender to lender. If you need some help do call one of our advisers and we will be happy to assist.
