Buy to let bounces back

It's great news for landlords and would-be landlords as buy to let still makes financial sense even after the stamp duty surcharge. New figures show new high annual returns for landlords.

New data shows that taking into account both rental income and capital growth, before outgoings, the average existing landlord in England and Wales has seen total returns rise to over 12% over the 12 months to March, making it the fastest annual rate of return for existing landlords seen since November 2014.

If you look at this in absolute terms it means that the average landlord in England and Wales has seen a return of over £22,000 over the last 12 months (before outgoings). If you break this down, the average capital gain contributed £13,494 while rental income made up £8,641.

The gross yield on a typical rental property in England and Wales (before taking voids into account) hit 4.9% in March. Average rents across England and Wales now stand at £791 per month (March 2016), some 3% higher in comparison to the same point last year.

Leading the way in England and Wales is the East Midlands, where rents are now 8.5% higher than compared to March last year, now at £613 per month. This is followed closely by the West Midlands with an increase of 6.7% and London with an increase of 4.6%.

It is the case across much of England and Wales that demand outstrips supply and it is increasingly becoming more difficult for supply from landlords to match the demand from tenants. Thus further enforcing the vital importance private landlord’s play in the UK housing market.

With tenant demand on the rise, is it important that your property provides exactly what prospective tenants are looking for and that you’re marketing yourself at a competitive price for both the home and its location. You can find out exactly how much that is by speaking to Orchard & Shipman and taking advantage of our FREE Rental Valuation service. By getting your property professionally assessed you are putting yourself in the best possible position to make the most of your investment. Simply call your local Orchard & Shipman property experts and book yours today.