Rents hit record highs in six regions of England & Wales
If you’re a landlord, you must factor in expenses like landlords insurance and maintenance when calculating your yearly returns. But expenses aside, you may be pleased to hear that overall returns for landlords are very much on an upward curve.
Recent figures, published by LSL Property Services, show that rents in six regions of England and Wales hit record highs last month, climbing to an overall average of 718 per month. Rents rose everywhere in England and Wales during September, with the highest monthly increase (1.8 percent) occurring in the South East and the greatest rent increase over the past year (5.8 percent) in London.
Of course, these rent increases are bad news for tenants but great news for landlords and providers of services such as landlords insurance, who may perhaps see an increase in business as a result of more people moving into the buy-to-let market.
What is the reason for the increase in rents? According to financial website This Is Money, the general rise in the cost of living over the last few years – combined with the high cost of deposits – means that people are finding it harder to get on the property ladder, so more are staying in the rental sector. This leads to increased demand for rental properties, which in turn pushes up rents.
So even if the outlook for tenants is gloomy, landlords and landlords insurance providers are set to benefit, at least in the short- to medium-term.
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