Uk rental prices

UK Rental Prices Rising

Before buying an investment property research is essential. In a market with concerns about pricing levels, then yields and return on investment become the priority for those considering property as way of saving for the future or as an alternative to a pension. UK Rental Prices are rising with The Office For National Statistics releasing figures in April indicating that UK rents have risen again. These figures have been increasing year on year since December 2010

Whilst these figures are indicative of the the whole of Great Britain and some of the constituent countries may have differing results if gives an overall picture. The Office for National Statistics (ONS) released in April the Index of Private Housing Rental Prices  which concluded England, Scotland and Wales have experienced rises in their private UK rental prices however the statistics also indicated that “Since January 2011 England rental prices have increased more than those of Scotland and Wales” This is unsurprising as the figures for England with include the rental prices for London. The figures may not have been as high as as expected as it is an average and the report advises “Between March 2013 and March 2014 Great Britain private rental prices grew by 1.0%.” Interestingly it also recognised that ” Rental prices increased in all the English regions over the year to March 2014, with rental prices increasing the most in London (1.4%). ” This follows 2013 newspaper headlines of UK rent rises at all time high levels.

The shortages experienced by those looking at rental property in the UK are the same as those experienced by those looking to buy property in the UK. Whilst some may have moved into the “those looking to buy group” persuaded by the “help to buy scheme”, this number could be limited by the changes to the criteria for residential mortgages and the continued rises in property values. So what of the rental levels for 2014. The Royal Institution of Chartered Surveyors (RICS) looking at UK rental property believes  “the shortage of property also continues to be felt in this area, with new landlord instructions broadly flat and rent prices over the next 12 months expected to increase by around 2%.”

So is this good news or bad news for those looking to buy an investment property or buy to let. the savvy investor as always carries out good research, as the ONS figures are an average for the UK it is vital to look at the history and demand generators in the area as some areas have performed well others not so so . Affordability is also a key consideration, despite excellent reports on the progress of the economy will salaries increase to cover higher UK rental prices. Therefore will the tenant be able to pay the rent? Being selective in your choice of property agent and tenant is one option , rental insurance also is another consideration. There are however. also a number of schemes that offer assured rentals where the developer is contractually obliged to pay a rental figure. This is popular with student accommodation developments but is also possible in residential property in the UK . Investment Property Consults is due to launch a superb scheme of residential properties in the South East of England that will be let to blue chip corporate tenants with a rental assurance.  For more information or to  pre register for this excellent project please contact us

 

 

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