Tuesday, 23 November 2010

Record high rental prices give landlords reason to celebrate

Landlords have reason to celebrate this month, as tenant arrears drop and rental prices go up for the ninth consecutive month. In October, UK rents rose by 0.4% to £691 per month. Annual inflation in the average UK rent has grown by 4.5%, which means that if this rental growth continues at the same pace, the average rent will hit £722 pcm by this time next year.

The average yield remained stable at 4.9% in October, as steady rent rises were matched by modest growth in the prices of rental properties.

Rental prices have gradually been increasing on a monthly basis, and the average rental property now stands just a few pounds shy of £700 pcm. With the run up to Christmas we are likely to see a slight slowing in the increase, but a strong underlying growth will remain, as key market dynamics are geared towards further rises in the rental market.

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