Rents continue to increase as arrears improve

Landlord Expert
By Landlord Expert November 24, 2010 11:28

Residential landlords in the UK are having to deal with fewer tenants who have fallen into arrears, according to new statistics released by LSL Property Services. While rents continued to increase in October by an average of 0.4 percent, the amount of outstanding rent owed to residential landlords fell from £229.3 million in September to £221 million by the end of the last month. Approximately 9.3 percent of rent went unpaid in October, signalling a noticeable improvement in a problem that caused headaches for landlords through much of the year. The current percent of rental arrears nearly matches the lowest rate ever measured by LSL Property Services.

The fall in rental arrears is only one element in the positive news for residential landlords. Monthly rents increased by 4.5 percent over the past 12 months, bringing the price of an average rental unit up to £691 per month. LSL calculates that at current levels, the average rent in the UK will reach £722 per month within a year. Yields in the buy-to-let sector currently stand at 4.9 percent.
Some observers do believe that the rental market may slow somewhat during the weeks before the holidays, but 2011 is likely to see further increases due to the continued high demand for rental properties.

In October, rents continued to rise most noticeably in the south east (1.2 percent), but landlords in the North East also saw increases amounting to 1 percent. Rents increased in all regions, except for Yorkshire and Humber.

Landlord Expert
By Landlord Expert November 24, 2010 11:28

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