Rise in rental prices

Rise in rental prices

In 2012 advertised rental prices in Great Britain increased by an average of 1.9%, or £37 per month.

The increase was pronounced in London where a rise of 3% was seen across the year.

Rents rose at the fastest rate in April as property owners sought to take advantage of the Olympics.

Price levels fell back in line when the Olympics finished in August.

London was not the region with the largest change in rental rates. The North East saw advertised prices increasing by more than 13% in October and November alone.

Investors are thought to be attracted to the areas lower house prices and stable yields.

Gross rental yields have remained at 5% throughout Britain in 2012, with the majority of regions returning an average yield of around 4%.

Returns have remained stable as both house prices and rents have increased at similar levels.

Overall, this suggests that buy-to-let properties were a worthwhile investment in 2012.

Robin King, director, Move with Us said: “Stable yields and rising rent values throughout the year have increased revenue in most regions.

“Investors are increasingly holding properties for longer periods with tenants staying for longer, house price gains, more debt repayment and improving absolute returns.

“These conditions look set to continue in the medium term making selective investment in rental property attractive.”

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