Buy to Let Mortgages in London Tuesday, 6th May 2008

The credit crunch is set to make rents climb higher. They are 12% higher than a year ago.

Over the first quarter of 2008, rents rose by an average of 4%, while they are now 12% higher than at the end of last year, reaching a record level of over £1,000 per month.

Yields remained stable in March at 6.3% for the third consecutive month and have increased by 0.2% over the past year.

The South West has seen the biggest rise in rental income, with the average landlord making around £17,089 annually, up by 42.2% in the past year.

However, Wales has seen rents fall 9.7% over the past year to £10,160 but the area also has the highest rental yield at 7.6%.

Difficulties in securing funding are putting off potential home purchasers, increasing the demand for rented accommodation.

The backdrop for buy-to-let remains positive across the country – potential residential purchasers are reluctant to buy in the current market or are unable to secure a mortgage and this is fuelling extra demand for rented accommodation.