With rent figures soaring skyward for the sixth consecutive month, it’s certainly a good time to be a landlord. Average UK rental prices were up by 0.6% in July, with annual rent inflation at 4.2%.
In a difficult buyers’ market, many frustrated would-be buyers find they are battling heavy competition for rental properties. This wealth of potential tenants means landlords currently have the upper hand and are able to increase prices.
According to the latest buy-to-let index from LSL property service plc, rents rose to a new record high this July – with average rental figures now £29 per month higher than in July last year.
As to be expected, London has seen the largest annual rent increase of 7.1%. The South East region as a whole has seen the fastest monthly rent increases – a rise of 1.7% Unfortunately for tenants, rents only declined in three regions – the West Midlands, Yorkshire & the Humber and the North West.
Here’s a handy graph to show you the current average rent figures per region:
The LSL Property Services research also shows even more heartening news for landlords with regard to tenant payments. Tenant arrears decreased for a third consecutive month, with 9% of all UK rent unpaid or late by the end of July – down from the 9.3% of rent unpaid or late in June.
However, although unpaid rent figures have fallen across the UK – unpaid rent still reached £251m across the UK in July.
Although the rental market is very buoyant, there’s still a real need for all landlords to protect their investment. Renting out a property can evidently be a lucrative venture but things don’t always go to plan.
Landlord insurance is specially designed to meet the needs of rental properties and will normally include loss-of-rent cover. For example, if your tenants fail to pay the required rent or your property becomes uninhabitable, it could help you to cover lost income.
We’re driven by a desire to help you find not only the best value insurance, but the right home insurance for your individual needs. For more information speak to one of our experts on 0203 014 9300 or email firstname.lastname@example.org