PRS Rents Increased 3% In 2014

Tuesday, January 27, 2015
PRS Rents Increased 3% In 2014

PRS Rents Increased 3% In 2014

PRS Rents Rise In 8 Out Of 10 UK Regions

New data released by LSL property services shows that average rental prices in the UK’s private rental sector increased by 3% during the whole of last year, despite the slight dip recorded at the end of the year.

PRS rents dropped by 0.1% in December 2014, compared to November prices, according to the latest Buy-to-Let Index published by LSL property services, the owners of Your Move and Reeds Rains, showing that the average PRS rental price reached £767 (GBP) in December 2014, compared to the £745 per calendar month average recorded in December 2013.

Tenant demand for rental properties remains strong as the UK continues to follow the European trend for renting rather buying with enough competition among tenants allowing many landlords to keep PRS rents stable in most UK regions.

In 8 out of 10 UK regions PRS rents remain higher than they were a year ago, with the East of England experiencing a 7.6% annual increase in PRS rental prices.

However, rents in 2 UK regions were lower than 2013 prices with average rents in the North East falling by 2.1% and rental prices in the South West down by 1.0% annually.

Landlords are also experiencing longer tenancies and are able to guarantee rental income per tenancy due to the development and availability of specialist products and services designed to aid the property rental market, such as Rent Protection insurance which allows continued rental income even if the tenant experiences a sudden change in circumstances.

Sim Sekhon

Sim Sekhon

Spokesman for Legal 4 Landlords, Sim Sekhon, said “Landlords are increasingly turning to specialist products and services to help them maximise their rental property returns, providing their tenants with added peace of mind as well as guaranteeing that rental income continues to flow. Rent protection insurance provides both landlord and tenant with a financial safety net should the unexpected occur, and all for just £60 per year.”

The LSL data also showed a calculated the average return per PRS landlord, before deductions, such as mortgage payments and routine property maintenance, at £18,893 (GBP) over the last twelve months. With £8,347 calculated as rental income and an average capital gain of around £10,546 (GBP) per rental property.

PRS landlords are able to once again achieve decent rental yields and there is a feeling of real confidence about the property lettings market in 2015, with over 40% of UK landlords planning to increase PRS rents over the next 12 months, in order to try to take advantage of the continuing tenant boom.

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Buy To Let, Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.