The average monthly rent hit a record high of £881 this year in the British private rented sector, according to the latest ‘Buy to Let’ report from Kent Reliance.
The report found out that the rents rose despite an increase in the stamp duty on new property purchases. Though there was a brief lull in the market following the UK’s exit from the EU, landlords expressed faith in the property market.
The report forecast a further increase in the rent with a third of the landlords surveyed planning to raise the rents by 5 per cent across Britain.
The landlords across Great Britain collected a total of £4.6bn a month in rents, an increase of 8 per cent year-on-year. At the same time, despite landlord fears over future impact of tax changes on profits, the gross total returns were at an average of £31,693 per property, equivalent to 14.4% per year.
The value of landlords’ holdings climbed £174bn last year to reach £1.3trn, the report said.
This clearly shows that the Buy-to-Let properties continue to offer attractive ROI through rents in Britain. Despite multiple challenges, including the biggest of all, Brexit, the private rented sector is growing. If you are interested in acquiring a Buy-to-Let property in London, book an appointment with Strawberry Star real estate agents by calling our global offices.
Average rents hit record high of £881 pcm despite post-stamp duty surge in supply, although rate of increase slows