Rental yields up as demand hits lowest level in 2 years

Landlord Expert
By Landlord Expert February 26, 2010 10:37

Long-term landlords and buy-to-let investors who have held onto their properties during the downturn will be relieved to see the fortunes of the rental market reversing, as "accidental landlords" return to the sales market. The resulting reduction in stocks is pushing up asking rents as tenants compete for the remaining properties.

The average UK asking rent now stands at £814pcm, £10 higher than last month’s low of £804pcm. However rents remain 1.9% lower than a year ago (£830pcm). The increase in rental values can largely be attributed to tightening supply, with the number of rental properties available on the market declining 3.6% in February, to the lowest level since November 2008.

Ten of the 11 UK regions experienced a monthly increase in asking rents in February, while rents in the South West remained stable at £797pcm. The northern regions recorded the highest increases, with rents in the North East rising 5.5% to £619pcm, followed by Scotland (2.5%) and the North West (2.3%).

Nigel Lewis, property expert at, said: "Landlords have been hunkering down over the past year and a half as – on average – rents and property values have dropped.

"But it looks like the wintery economic conditions may be easing now as accidental landlords exit buy-to-let, so the market is no longer awash with a surplus of property to rent. If this tightening in supply continues landlords may enjoy a further recovery in rents over the course of the year."

Landlord Expert
By Landlord Expert February 26, 2010 10:37

Membership Login

Register| Forgot Password?


Recent Member Comments

  • Carlo Gaudiano { Dear Landlord Expert. I have two tenants in a spacious 2 double bedroom garden flat. I want to allow them to sublet the 2nd double... }
  • User AvatarJohn Walters { need advice on a difficult situation please. I have a very difficult and aggressive tenant in Bolton who refuses to pay rent or move out... } – Jun 01, 10:41 AM
  • Philip Haworth { Is there a letter to raise order for possession of the property. }
  • User AvatarLandlord Expert { We do not know of any issues. There have been 3 questions submitted today and have been published although I see none for you. Providing... } – Apr 20, 4:51 PM
  • User AvatarJazz Sounds { Is something wrong with your site? In your "ask a question" section I am unable to post my question. I am also unable to view... } – Apr 18, 10:37 AM
  • Older »

News Archive