You’ve arrived at the Experience Invest blog. We work hard to bring you all the latest British residential and commercial property news you need to know. New figures indicate that UK buy-to-let rents showed robust growth in January 2016.
‘Buy-to-let refers to the practise of purchasing a residential property and then letting it out to tenants in order to earn rental profit. The Guardian reports that a study conducted by economists at the Wriglesworth Consultancy showed that buy-to-let returns rose by almost 1,400% from 1996, the year specialist buy-to-let mortgages were introduced, to the end of 2014.
The Latest HomeLet Rental Index suggests that buy-to-let returns remained strong for investors heading into 2016. Property news portal Introducer Today wrote that the Index suggested that UK rents (excluding Greater London) increased by 5.5% in the last year, while Greater London rents rose by 6.2% during the same period.
The Index showed that UK rental growth remained strong in the three months to January 2016. During this period, rents rose in 11 out of 12 UK regions when compared with the same period the year before. Excluding Greater London, the average UK rent now sits at £740 per month.
Commenting on the release of the Index Martin Totty, CEO of Barbon Insurance Group, which owns HomeLet, said: “There is still strong demand for rental properties, driven mainly by the impact of the long term structural imbalance in supply and demand of property.”
Meanwhile, the average rent for a new tenancy in Greater London is now £1,510. The Index suggested that rent prices for new tenancies in the UK capital rose at their slowest rate for two years over the past 12 months. Continuing, Totty added: “In recent years, the capital has seen much faster rates of increase than the rest of the country, but it may be that an affordability ceiling has now been reached in London and that rents will now track other parts of the UK more closely.”
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