Buy to let rents rises by 3.4pc

house-price-upBuy to let rents rose by 3.4% during 2015 being the fastest pace since 2011, recent figures show. The average UK rent is now £794 a month although rising arrears suggests that some tenants are struggling to keep up. The latest Buy-to-Let Index from Your Move and Reeds Rains shows, that accelerating property prices have suppressed yields while boosting total annual returns to 11.3%, which means rents are outpacing inflation. Yorkshire & Humber and West Midlands both had new all-time record high rents in December.

Adrian Gill, director of estate agents Reeds Rains and Your Move, says: “Rents reacted strongly in 2015, driven by growing pressure from supply, and the more troubling lack of housing in the UK, being the cause for rising up rents. The fact that the majority of tenants can afford higher rents is certainly positive yet also raises a serious challenge for the future affordability of housing in UK. Everything else will need to keep up.”

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