The latest report from LSL Property Services catches my eye the other day. The report uses data based on rental income from 20,000 properties, and assumes that rental property prices will continue to rise at the same rate as over the last three months.
If this is the case, then the average buy-to-let investor will achieve a total annual return of 13.1% over the next 12 months - equivalent to Ј22,065 per property. London is leading the way, with rents in the capital rising three-and-a-half times faster than in the rest of England and Wales over the past year.
The average monthly London rent now stands at Ј1,126, which is 4.8% higher than last year. The South-East isn't far behind: the average monthly rental payment here is Ј762. The region actually recorded the strongest month-on-month growth, according to the report, with a 2% rise. Across England and Wales, monthly rents are now within Ј1 of their all-time high at Ј743.
What do all these figures mean for potential buy-to-let investors? The fact that landlords now account for one in ten mortgages indicates that many people think property investment is a good thing. Largely, I agree with that sentiment, but then I'm an estate agent, so who am I to disagree? I do agree with it, provided that those entering the buy-to-let market know what they're doing.
Here are a few tips. This is an investment activity, so have your business head on at all times. It's best to buy a newer property because they'll need less maintenance. Also, in my experience, two-bedroom properties are far easier to let than larger family homes.
Spend some time researching areas adjacent to your own where rental yields may be higher. Consider transport links, school catchment areas, local amenities: these will all attract tenants to a particular area.
Do and re-do your finances: factor in the worst case scenario as well as the best one. Finally, find yourself a reputable lettings agency: one that's going to work for you as well as for themselves.
If this is the case, then the average buy-to-let investor will achieve a total annual return of 13.1% over the next 12 months - equivalent to Ј22,065 per property. London is leading the way, with rents in the capital rising three-and-a-half times faster than in the rest of England and Wales over the past year.
The average monthly London rent now stands at Ј1,126, which is 4.8% higher than last year. The South-East isn't far behind: the average monthly rental payment here is Ј762. The region actually recorded the strongest month-on-month growth, according to the report, with a 2% rise. Across England and Wales, monthly rents are now within Ј1 of their all-time high at Ј743.
What do all these figures mean for potential buy-to-let investors? The fact that landlords now account for one in ten mortgages indicates that many people think property investment is a good thing. Largely, I agree with that sentiment, but then I'm an estate agent, so who am I to disagree? I do agree with it, provided that those entering the buy-to-let market know what they're doing.
Here are a few tips. This is an investment activity, so have your business head on at all times. It's best to buy a newer property because they'll need less maintenance. Also, in my experience, two-bedroom properties are far easier to let than larger family homes.
Spend some time researching areas adjacent to your own where rental yields may be higher. Consider transport links, school catchment areas, local amenities: these will all attract tenants to a particular area.
Do and re-do your finances: factor in the worst case scenario as well as the best one. Finally, find yourself a reputable lettings agency: one that's going to work for you as well as for themselves.
gibbs-gillespie
Tel 08002425255 
renttoownproperties@consultant.com
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