Calling all landlords: rents in England and Wales reach an all-time high

Rents have edged to a new all-time high of £768 per month across England and Wales, according to a recent Buy-to-Let Index. As a result, we believe that now is as good a time as any for landlords to let out their properties.

The average of £768 per month, recorded by Reed Rains and Your Move, is £10 higher than the September 2013 figure. Regionally speaking, rents in five out of ten regions of England and Wales are higher than a year ago. The fastest annual increase was seen in the East of England, at 3.1%, followed closely by the South West at 2.3% and London with a 2.2% jump in rents since September last year.

A new all-time record was also seen in September’s total gross returns of 13.4%, better than both August 2014 and the previous high witnessed in April 2010, when total returns reached 12.9%.
This means, in absolute terms, that the average landlord in England and Wales has seen a return on their investment. Before payments for upkeep and mortgage payments are taken out, landlords could expect an average return of £22,706 in the last year. This combines rental income of £8,379 and an average capital gain of £14,327.

If rent prices carry on growing at the same pace as the last three months, then the average Buy-to-Let investor in England and Wales could expect to make an overall annual return of 22.1% over the next year, or £40,489 per property.


This favourable market is widely considered to be due to a combination of low interest rates and steady growth in property values and with an interest rate rise not due until some time in 2015, it will remain an easy and profitable time for landlords to grow their portfolios.

Elsewhere, interestingly, findings released last week by Rental Raters show that many private tenants spend hardly any time at all inspecting a property before deciding to make it their home. They don’t tend to explore every nook and cranny with a fine toothcomb, as over half of tenants say ‘yes’ to a new home after less than twenty minutes viewing the property, whilst 19% will decide after less than ten minutes and, astonishingly, 14% of tenants will never even visit the property they plan to live in. In addition, 64% of renters will make just one visit to a property before choosing it as their new abode.

With tenants spending so little time picking over a property, it is therefore vitally important that landlords make sure the homes they are looking to rent out are in excellent order. They need to stand out in a crowded, fast-paced, ultra-competitive market, giving prospective tenants the ‘wow’ factor and making sure the property in question is too good to turn down. Upkeep plays a big part here.

Making sure the property is in great condition, by carrying out the necessary maintenance and repairs, will definitely appeal more to tenants than a house that is not so well-looked after.

Furthermore, with some people not even visiting properties in person before moving in, the online advert becomes all-important, as this is what would-be tenants will be basing their decision on. First impressions become vital. The advert, blurb and accompanying photos all need to appeal. This is where your agent will help you, using their expertise to make sure the advert is as attractive as possible as a selling tool.

According to recent findings, five tenants are now pursuing every rental property. With demand now hugely outstripping supply, the pressure on tenants to quickly secure a rental home is intense. This is where landlords can take advantage, by offering a good and reliable package in a quick and easy manner.

Estate agents working across the South of England, Chimney Pots offer a free and instant online valuation of your rental property. In addition, we provide a step by step guide for landlords. For any advice on renting your property, contact us on: 0844 809 993.