If you are thinking about investing in a buy to let it could still make a very viable investment. In 2016 rents continued to rise in England and Wales, with the average rental property being let for £811, an increase from £790 in January 2016. In the South East rents in December were up by 4.6%, giving a rental average of £864.00. The East of England experienced the fastest growing rental increases, as tenants in the Capital continued to move to the home counties in pursuit of cheaper rents.*
Investor returns in general remained strong, in the South West and South East of England rental yields were recorded at 3.4% and 3.5% respectively in December 2016.
Tenant arrears also remained historically low – 8.7%, well below the all time high of 14.6% recorded in 2010. At Intercounty our tenant arrears are far lower than the National average of 8.7%.
Caroline Rutherford, Lettings Area Director for Intercounty commented: ‘It wasn’t just the White House that welcomed a new tenant – 2016 saw higher than ever numbers of tenants moving into new homes. With demand for rental properties continuing to remain strong.
'Following the increase in stamp duty for second home ownership, our region, the East of England, mirrored the National trend, as the number of buy to let investors in the second half of 2016 decreased. However since then landlords have become attracted by long term capital growth and have started to reinvest in rental property.
‘2017 looks set to be another strong year for the rental market, with no sign of a slow down,’ Rutherford added.
If you are interested in investing in a buy to let why not get in touch with your local branch of Intercounty or give our team a call on 01279 655243
· Statistics from Your Move Buy to Let Index