The average rent in the UK reached £658 per month, 3.2% higher than a year ago, roughly in line with inflation. Yields on buy-to-let property rose to 4.8%.
The total return from investing in buy-to-let over the last twelve months reached 10.6%, the highest level since LSL Property Services plc began compiling figures two years ago. This is despite a slight drop in house prices in February.
David Brown, commercial director of LSL, commented: “The short term glut of supply in the rental market at the end of 2009 and the beginning of this year as landlords rushed to grab the stamp tax break has now disappeared. This means rents are on the rise again.
“The good news for landlords is that those who missed out on the stamp duty holiday to grow their portfolios are now able to pick a new property slightly more cheaply anyway as the housing market pauses for breath, and are able to charge better rents as the competition for tenants subsides.”