Average rental yields rise again but tenant arrears increase
A recent research by LSL Property Services showed that rents in England and Wales rose by 0.2% in February, to £684. This represents a 3.9% increase from 2010 and means that average yield on buy to let properties in UK also grew.
As such, LSL Property Services experts are determined that they increase amounted to 5% because growth of property values lagged behind the growth of rents.
The most significant and quick growth was registered in Wales - 1.9% - followed by the north-west - 1.1% - and the east Midlands - 0.8%.
The bad news UK landlords faced, however, was an increase in the number of tenants in arrears. The overall proportion of unpaid or late rents was 12.6% in February, which compares to 11% in January. In terms on money, this amounted to £296 million vs. £258 million in January.
Mr. Newnes of LSL Property Services said that these “figures should serve as reminder to property investors that active and prompt intervention is necessary at the first sign of a tenant showing signs of difficulty in paying the monthly rent cheque, or they themselves will see mounting mortgage arrears.”