In the last blog, I covered some of the positive stories that are around at the moment about the rental sector. This blog is a little more of the same with a bit more focus on the rental returns aspect of things which, let’s face it, is the most vital part for any landlord.
LSL Services, which owns the UK’s largest lettings agent network, puts the improvement in rental returns in the UK at 13 percent over the last twelve months. It now puts the average rent in Britain at £669.
One of the things that LSL attributes this to is the number of first time buyers who are being turned away by the banks’ new lending policies. It estimates that a staggering two hundred thousand of these have become renters when before they would be in their own houses. This increased demand has allowed landlords to put a fair price on their rental properties.
All of this good news has resulted in a feeling of optimism in a lot of landlords, with surveys showing that fourteen percent of us are expecting to add to our portfolios over the next two to three months.
Looking at it from the point of view that this purchasing will promote growth, it is easy to think that things really do look quite rosy in our sector, but should all this good news be tempered with a bit of caution? According to some experts it should.
I will look at what they have to say in the next blog.
