Despite the fact that the Government has imposed tax levies on investment properties in the UK to slow down the buy-to-let market, it seems to have had the opposite effect, as rental prices haven’t even wavered since the changes were brought into effect on the 1st April 2016. In fact England and Wales have experienced some of the fastest rental growth, with the average rent now costing £793 per month.
Landlords are receiving annual returns of 10.7% (before expenditure) in the year to April, with healthy gross yields of 4.9%. In the East Midlands rents have reached an all-time high rising by 8.5% over the past year. The other good news is that tenants arrears have also dropped by 8.1%. Showing that buy to let market still offers some of the best returns, especially when compared to shares, bonds and savings accounts.
The economy continues to look rosy - wages are increasing, unemployment remains low and there is still a deep-rooted shortage of housing in the UK, which is stimulating this rapid growth.
If you are thinking of investing in a buy-to-let property why not pop into your local branch of Intercounty, or give our team a call on: 01279 655 248