Things are looking up for landlords in the UK as a recent report from LSL Property Services has shown a 0.5% increase in the average national rental yield for the month of May alone. While variation certainly exist from one region to the next, overall those renting property are finding extra income through their endeavors. Not all parts of the UK are exceeding the average, but in some areas, such as the West Midlands, buy to let properties are bringing in a 2.1% higher yield than the previous month.
On the whole, London landlords are enjoying a solid increase in their rental incomes in comparison with other cities thanks to a stronger local economy. Those renting out property in London are able to expect around £924 per month, on average. This compares London favorable to the West Midlands where the average income for a rental each month is around £540. These figures have led to high levels of optimism for those looking to earn in the Private Rental Sector since so many signs of those planning to invest in an accommodation to let are now being seen. More money being put into these properties stands in contrast to recent reports in the media that many are concerned over the British economy’s current stability.
According to the Commercial Director of LSL Property Services, David Brown, the increase in house prices has steadied so income from rentals is making up a large part of the total return a landlord can expect. He went on to say that rents are now only £21 lower than the historic high, continuing an upward trend that favors profits for landlords.
Statistics now show that in the past year, landlords have been able to earn 13.2% returns on their buy to let properties. These investments are making around £20,363 per year on average for their owners with £13,263 coming from capital gain and £7,100 from rent. With the price of rented properties not rising as quickly as rental yields, buy to let accommodations are worth 8.6% more than in 2009.
Brown went on to say that since yield per rental, rental income and tenant demand now all favor those investing in property they plan to rent, a recovery is definitely set to continue for those in the buy to let market. He has stated he hopes the government will not impose a plan to raise Capital Gains Tax on the private rental sector since this could endanger the recovery.
Those landlords who intend to increase their own yields by adding to their property holdings may wish to carefully consider their options for rent guaranteed insurance. Find out why many are turning to www.justlandlords.co.uk for the best deals.

