The number of new tenants looking for a rental home has increased by 5.1% since May last year, and 3.4% on a monthly basis according to a new report.
Although rental increases slowed between April and May to 0.1%, compared to 0.3% before, tenants financial situations do seem to be improving, with the proportion of all rent arrears falling to 8.2%.
The average price of a rental property now stands at £737 per month, an increase of 0.1% since April. The strongest rental rises were in London, where rents are 7.2% higher than they were a year ago, this was followed by Wales where they have experienced annual rises of 5.2%, apart from the South West which experienced no change, nine out of ten regions in the UK experienced a rise in rental prices.
Recently there has been an increase of first-time buyers able to get onto the property market in the UK, but the long-term prediction is that rental prices will continue to remain strong as the demand for rental accommodation increases.
If rental prices continue as they have done over the past three months then a landlord could expect to see a total annual return of 6.2% per property over the next 12 months, which is the equivalent to £10,316 per rental property.
If you are looking to buy a rental property then why not pop into one of our local branches of Intercounty where one of our experienced property team will be able to discuss all of the options available to you.
Source: LSL Property Services