Rental properties are seeing an increase as more families are finding it harder to enter the home owner’s ranks. In July the rise made the sixth consecutive month for increases. The cost of renting a property rose as well by 0.5 per cent.
LSL Propery Services revealed research that the average price to to rent property is up 2.3 per cent higher than in 2009 and is now 676 pounds per month. Prices are destined to increase as the demand for property to rent keeps surging ahead of supply. In key areas, especially London, it is difficult to find property. With university students returning to school this month it should make it even more one sided for the demand side as many look to rent for the school year.
Rental cost is still not at the peak it was in 2008, but only sort by 12 pounds per month. David Newnes, of LSL Property Services, said: ”The recovery in prices 12 months ago caused an exodus of accidental landlords from the market, ending the glut of supply of rental accommodation.
“Although house price rises have levelled off, landlords are still reaping the benefits of the constrained supply, and the improving yields have restored a healthier balance to the dynamics of property investment.”
LSL said a property investment purchased now could expect to make an average return of 3.5 per cent a year or 5,838 pounds per year.
Newnes added: ”The current market presents a golden opportunity for property investment before house prices resume their long-term upwards march.
“With a sensible investment model, a landlord can expect to see healthy returns, with any future capital appreciation a bonus.”