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2012 rents rise and yields remain almost unchanged

Posted by on January 24, 2013

The most recent LSL Property Services’ buy-to-let index report saw a rise in rents for 2012 of 3.2% in England and Wales with yields remaining steady.

As at December 2012 the average rent was recorded at £734 which is slightly higher than the same time in 2011 (average of £711). The average yield increased by 0.1%, to 5.4%.
December also saw rental arrears rise to £326m, or 10% of all rent across England and Wales.

Let Alliance CEO Andy Halstead comments “Rent arrears and ultimate rent defaults are a serious risk to residential property investors. Lost rent can never be replaced and in this difficult economic climate many tenants are under financial pressure. Prevention is far better than cure, ‘Nil’ Excess Rent Guarantee takes away the risk of lost income, giving landlords peace of mind. Legal protection is also beneficial, making sure landlords avoid the associated costs when faced with legal action to obtain vacant possession. Tenant demand is at an all-time high, so is the risk of rent arrears”.

He continues “Our valued Letting Agent customers have access to our Rent Guarantee Insurance policy which provides Nil Excess cover as standard, is payable until Vacant Possession and if required we will seek repossession of the property and cover the costs. All this from just £35 for 6 months cover and our ‘Ultimate’ tenant reference is included at no additional cost”.

Source: LSL Property Services

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