LSL Property Service’s Buy-to-Let index was released last week with some interesting findings. The report highlighted how rents have increased by 3% in 2014, despite monthly decreases in the last two months of the year.
Your Move & Reeds Rains Director of Estate Agents, Adrian Gill adds;
“There appears to be a new fire in the rental market as we enter 2015. Demand for homes to let is hotter than we would normally expect at this time of year.
Recent months have shown a divergence from usual seasonal norms. Historically, there is a tendency for rents to ease in the winter, particularly December. With fewer tenants willing to relocate in the festive period, landlords usually compete to fill empty properties and agreed rents tend to dip as a result. Last month that happened – and rents fell compared to November – but by much less than the usual extent.
In particular a jobs boom across the eastern regions of England has seen a larger than usual number of people relocating in the winter months. This has pushed up rental prices in these regions even further.”
The report adds that tenants have really felt the festive squeeze during these past months. Importantly this has led to an over 1% jump in in the number of tenants now in rent arrears since November now at 8.9% - its highest in a year. With this having been said, generally speaking the percentage of tenants in arrears is still in decline now sitting at 7.5%, down from an average of 8.1% over the past year.
In terms of yields and returns the report highlights a typical yield of 5.1% per property in December 2014, a yearly decrease of 0.2% percentage points when compared with December 2013.
If you would like to know more, or how you can better organise your investment property or portfolio then why not pop into one of our branches or call us on 0844 8111090.
Source – LSL Buy to let index Dec 2014 – Published 16th Jan 2015.