Average rents for properties around the UK increased in May
, new research has shown. The latest Buy to Let Index from LSL Property Services revealed that rents rose by 0.05 per cent in May to reach an average of 696 GBP.
People with property investments
in London are likely to have seen their portfolios surge in recent months, as total annual returns in the city reached five times the national average.
The north-east and East Midlands regions have also experienced significant rental hikes over the past 12 months, rising by 6.4 per cent and 6.2 per cent respectively.
David Brown, commercial director of LSL Property Services, explained that the slight drop in the value of rental properties is holding back total returns. However, he noted that "with rental income continuing to escalate, landlords are still looking at a healthy return on their investment - especially on long-term investments."
And with the company's House Price Index recording just a 20 GBP rise in residential property prices in May, investors could find that making purchases is this sector is more affordable than previously.
- Tuesday 21 June 2011