Buy to Let Market Is In a Strong Position

A recent report released has suggested that higher yields have been realised because of the many first time buyers who defer from buying and instead choose to rent.

The average return on a 12 month let stood at 14.2% during October, compared to 10.5% in September 2006.

Higher yields are likely to remain until confidence returns once more to the housing market which many people believe that it has peaked.

Some areas are performing better than others where rental yields are highest in Greater London (25.1 per cent), East Anglia (24.5 per cent) and the north (20.6 per cent).

Over the previous 12 months the average rental property has accumulated GBP13,640 in value and average rents have also increased.

The last 12 months have seen a 7% increase in average rents and now costs £10,718 to rent the average property.

The future of the UK rental market looks very good with rental demand remaining high, thus average rents should continue to increase further.

One interesting development that could arise from the recent credit crunch and the tightening of lending criteria could mean many more people may rent instead of buy as they cannot get credit. This would potentially cause a boom in the UK rental market but only time will tell if this is to be the case.

Overall the UK rental market is in a positive state and with rents continuing to rise, the outlook looks positive for new and experienced property investors and landlords.