Harefield Gazette - - PROPERTY -

RENTAL COSTS UP 3% IN 2014 Ac­cord­ing to the lat­est buy-to-let in­dex from Your Move and Reeds Rains, rents in Eng­land and Wales in­creased by 3% over 2014 – de­spite fall­ing dur­ing Novem­ber and De­cem­ber – and the av­er­age res­i­den­tial rent now stands at £767, com­pared to £745 recorded in De­cem­ber 2013.

There were in­creases, to var ying de­grees, in eight out of the 10 re­gions with only the Nor th East and South West record­ing dips.

Adrian Gill, direc­tor of es­tate agents Reeds Rains and Your Move, said: “Re­cent months have shown a di­ver­gence from usual sea­sonal norms. His­tor­i­cally, there is a ten­dency for rents to ease in the win­ter, par tic­u­larly De­cem­ber. With fewer ten­ants will­ing to re­lo­cate in the fes­tive pe­riod, land­lords usu­ally com­pete to fill empty proper ties and agreed rents tend to dip as a re­sult.

“Last month that hap­pened and rents fell com­pared to Novem­ber but by much less than the usual ex­tent.”

With re­spect to land­lords, the in­dex also showed that gross yield on a typ­i­cal rental proper ty in Eng­land and Wales now stands at 5.1%, which is sta­ble com­pared to the fig­ure of 5.3% in De­cem­ber 2013. In ab­so­lute terms the av­er­age land­lord in Eng­land and Wales has seen a re­turn – be­fore de­duc­tions such as mor tgage pay­ments and main­te­nance – of £18,893 over the last 12 months. Within this fig­ure rental in­come makes up £8,347 while the av­er­age cap­i­tal gain amounts to £10,546.

Adrian Gill ex­plained, “While to­tal re­turns have fallen, they re­main well over 10%. Proper ty prices have risen a lit­tle more grad­u­ally in re­cent months, as the pur­chase mar­ket ex­pe­ri­ences its own win­ter lull and as re­straints and uncer tain­ties for the proper ty mar­ket have grown slightly in the lat­ter months of 2014.

“How­ever, that hasn’t se­ri­ously dented prospects for land­lords. In fact, with rents up and yields steady, more land­lords can be con­fi­dent that the cen­tral de­ter­mi­nant of their busi­ness model is hold­ing firm.”

Should you be con­sid­er­ing let­ting, buy­ing-to-let, rent­ing or mov­ing, then sim­ply pop in to see us for a warm wel­come and an in­for­mal chat.

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