ONS: Rental returns increased over past 12 months
Buy-to-let investors have seen the rents associated with their property rise by an average of 1% over the past 12 months.
Summary:
- ONS figures show rents increased by an average of 1% over the past 12 months
- Properties in Scotland generated the highest rise in rental values
- An increased demand for rental accommodation is urging more people to make buy-to-let property investments
Buy-to-let property investors saw rental returns rise by an average of 1% over the 12 months to September 2014.
New figures from the Office for National Statistics (ONS) show that property investments in Scotland are generating returns that are outpacing property in other nations in Britain.
Private rental prices paid by tenants in Scotland rose by 1.4%, compared to rises of 1% in England and 0.2% in Wales.
The figures are listed in the Index of Private Housing Rental Prices (IPHRP), an experimental document that tracks the change in price of renting residential property from private landlords.
In time, the IPHRP will be a valuable resource for tenants, landlords and investors as it will enable a detailed and current assessment of rental payments, as opposed to a purely historical analysis. Unlike other buy-to-let resources, the index does not solely measure the change in newly advertised rental prices, but provides an overall view of the price changes for all private rental properties.
There is a sustained focused on rental payments as more and more people are looking to either rent or make a buy-to-let property investment in the UK. Circumstances and attitudes have changed across the country and the size of the private rented sector is growing.
With an increased demand for rental accommodation, investors are finding that properties are easier to let and the most sought-after homes can demand a premium.
As saving rates are currently low, the rental returns that property provides are very attractive – and rising rents will only increase the appeal in the future.
Source: Select A Property