Rents are still rising but landlords must keep a wary eye on the future for when the public sector spending cuts and changing employment situations start affecting tenants’ ability to meet their monthly payments.
The warning comes from LSL Property Services plc whose latest Buy-to- Let Index reports that rents reached their previous peak high in April after a spring surge in demand.
In April, the average rent in England and Wales rose by 0.8 percent to £692 per month, matching the record high reached in November 2010. The growth means that rents are now 4.4 percent higher than a year ago, the highest annual inflation since November 2010. The average yield reached 5.1 percent in April as rents increased at a faster rate than rental property prices.
David Brown, commercial director of LSL Property Services, said: “The rental market is heating up as thousands of would-be tenants have taken advantage of the weather and long weekends to hunt for new rental homes.
Source: Residential Landlords