Property boom helping London landlords earn double national average
03-03-2014
Booming market: London rents rose by 3.2% in the 12 months to January
Staff/Agencies
London landlords are making more than double the average return across the country amid surging property values and a continued shortage of homes to choose from.
LSL Property Services, which owns chains Your Move and Reeds Rains, said the capital's landlords have seen annual returns of over £38,000 typically over the 12 months to January, made up of income from rents as well as the rising value of rental property in London.
Across England and Wales, the average return for landlords over the last year has been £14,767, with the North East recording the lowest average return at £7,271.
LSL predicts that if current trends continue, landlords could expect to make an average return of around £22,256 per property over the next 12 months, helped by rising rental property values and smaller periods when properties are standing empty between tenancies.
LSL, which bases its study on rents achieved on more than 20,000 properties, said rents rose by an average of 1.4% over the 12 months to January, to reach £742 a month on average. On a month-on-month basis, there was a "small seasonal fall" in typical rents of 0.4%.
The South West has seen the steepest year-on-year rise in rents, with a 3.7% increase taking them to £662 a month on average. This was followed by a 3.2% annual increase in London, where average rents are now £1,121.