Inflation causes increase in Buy to let rents

A row of terraced housesThe UK’s buy to let rents have leapt by 4.7% over the past year and the rents have so far exceeded todays -0.1% inflation rate which hits an average of £806 per month across England and Wales. Buy to let rents did fall by 1.2% in October, reducing rents from September’s high record of £816. As the property prices too got increased, the landlords had total annual returns of 11.6%, according to a recent buy to let report.

Expert says: “The tenants are earning more, and meanwhile buying home is an unworkable stretch for many, wherein renting a home is still within reach. By contrast, rents are more basically limited by monthly budgets and average rents are likely to continue to rise swiftly on an annual basis. The absence of enormous number of new homes could increase the share of income spent on rent.”

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