North West rents increased by 6.9% compared to national average of 4.3%

Posted: 10/08/2012

A study carried out by RICS (Royal Institution of Chartered Surveyors) has revealed that rents have increased an average of 4.3% over the last 12 months however, the study also revealed that there are many large regional variation’s with the largest of these being recorded in the North West.

The North West of England has seen rent increase by a huge 6.9% over the past year in comparison with Wales which saw rents remain at a steady level during the same period.

Unfortunately, the news doesn’t; get any better with RICS predicting an national rent rise of 3.9% in the next 12 months. The reason for this is due to the difficulty in securing a mortgage and the demand for desirable properties to rent as well as the shortage of properties coming onto the market.

The demand for rental properties is continuing to grow so much that the figure has surpassed the change in demand since the first 6 months in 2009. Of course, this is great news if you are a buy to let investor as you are set to make steady returns due to rent increased and the recovering property market.

According to the Council of Mortgage Lenders, there has been an increase in the amount of buy to let mortgage applications. The amount of buy to let mortgages has raised a fifth over the past year but is still a third off the peak which was hit in 2007 but took a tumble in 2009.

The Council of Mortgage Lenders stated that £3.9 billion worth of loans were advanced in the three months leading up to June which is an 18% increase on the same period last year.

The amount of buy to let properties that were repossessed has stayed at a steady figure of 0.12% and the proportion of lenders that are in three months arrears has fallen to 1.56% from 1.69% from the end of March to the end of June.

Amanda McGovern, Pali Ltd
www.paliltd.com

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