Rental market boom as property prices on the up
LANDLORDS in England are witnessing a booming rental market, with earnings from rental payments in excess of £32bn per year or almost £2.7bn per month, according to new research.
In total, 44 per cent of the entire country’s rent is paid in London.
Outside the capital, Leeds pays the greatest amount of any city, with annual private rent totalling £565m, followed by Birmingham at £521m and Manchester at £401m.
The research also reveals that London and the Home Counties dominate rental incomes, with the highest average rents in inner London at £19,596 per year or £1,633 per month.
“Buy to let is becoming an increasingly attractive option for people as property prices continue to soar”, said Jazz Gakhal, head of Direct Line for Business.
“Landlords and potential landlords looking to take advantage of this should also appreciate the risks involved.
“Bad payers and potential damage to property are just a few of the costs that can lead to landlords paying out 25 per cent of the revenues they receive in rental payments annually.
“Taking the necessary precautions such as letting through an agency and taking out landlord insurance can help to alleviate concerns and ease the rental process,” he added.
To help landlords keep track of charges paid, ongoing expenses and to assist in calculating the yield on their portfolio Direct Line for Business has launched a new landlord app, Mobile Landlord, that enables landlords to manage up to five properties on the go through a single online, mobile portal.
Mobile Landlord is free to download and available on both iOS and Android.
The buy to let market is booming as people to choose to rent rather than buy