Rents fall for second consecutive month

Landlord Expert
By Landlord Expert February 21, 2011 10:33

More investors have been encouraged to join the buy-to-let market in the recent past, which has helped push residential rents down for a second consecutive month, research by LSL Property Services has found.

The average rental cost fell slightly in January compared with the previous month as the typical rent in England and Wales dropped by 0.3 per cent to £682 per month, according to the firm's Buy-to-Let Index.

Because rents declined at a faster pace than capital values, the average yield also fell slightly to 4.9 per cent in January as tenant arrears also slid, although 11 per cent of all rents still remained in arrears.

David Newnes of LSL commented that the supply of rental homes on the market is down to "the recent loosening in the buy-to-let mortgage market".

"With more products coming onto the market, there are signs that this trend is continuing into 2011, allowing a growing number of professional landlords to get onto the market, or broaden their portfolios," he added.

Meanwhile, demand for rental properties hit a six-month high in January, according to the National Association of Estate Agents.

Landlord Expert
By Landlord Expert February 21, 2011 10:33

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