Rental yields in the UK fell slightly

Average income from renting residential property in the UK fell 0.1% in may.

Published a monthly index from one of the largest agencies in the UK, which specializiruetsya on the renting of residential real estate Countrywide. A curious fact was the data about what apartments of two and three bedroom apartments recorded the largest monthly increase in rent. And in Wales recorded the biggest increase in rents in all regions by 4.9%.

Index from Countrywide also reflects the amount of unpaid rent. According to recent studies, the arrears of rent has decreased in all regions except Scotland and the East of England.

In the whole country the yield from the date the rent fell slightly, with the exception of Eastern England, where annual rental yield showed an increase of 0.2% to 6.2% and Scotland where the rise amounted to, respectively, 0.1% to 5.8%. In the South – Western and Central part of England annual yield has not changed and amounted to 5.7% and 6.5%, respectively. The greatest rental yield was in Wales at 6.6% in Midline of 6.5% and the North at 6.4%.

Apartment on two and three bedrooms are rented with an annual yield of 0.5% and 0.3% more expensive. The average rent for two bedrooms is £770 per month, and the average cost of an apartment 3 bedroom is £884 per month. Rent one-bedroom apartments declined slightly by 0.6% in April 2013 and was £674, and four-bedroom flats with more rent on average for £1363, and this figure fell in April by 2.1% .

The lowest average monthly rent recorded in Scotland – its size reaches £617 per month. And the highest, obviously, in Central London at £2340 per month.

The main reason for the decline in annual rental yield in some regions is that house prices are rising faster than average rents. However, despite a slight decrease in yields in may, rental income remain strong and stable, that still makes the market rent of residential property in the UK is very attractive from the investment point of view – it is more attractive than any other investment.

The fall in average monthly rents for apartments 4+ bedrooms, reflects the intention of the consumers to make a choice in favor of a cheaper cost of living.

Accordingly, such consumers moved to cheaper rental sector. Partly such situation is actual for customers who have money on Deposit, with the intention to buy your first home.

Summer is traditionally a hot time for the rental market, demand for rental is rising, because many tenants want to September to solve their housing issues and move to a new home. Most likely, the average monthly price of rent will increase during the summer months as demand increases.

Alice Morgan 09.06.2013