London rents continue to rise
Investing in buy-to-let in London continues to be lucrative, with data showing average rents in the capital are soaring.
According to figures from tenant referencing service HomeLet, the average rental price in Greater London increased to a record £1,202 in August, up from £1,154 the previous month.
With it still proving extremely difficult for would-be homeowners to secure a mortgage or raise enough money for a deposit, demand for rented property is surging, said HomeLet, and as a result the current cost of renting in the capital is 12.2 per cent higher than the same time last year.
"Despite increasing rents due to high demand, the private rented sector is still offering a stable alternative to home ownership," commented the firm's managing director John Boyle.
"Whilst many tenants are still renting because they can't afford to buy, an increasing number of tenants are choosing to rent for the long term because of the flexibility that that it offers.
Meanwhile, the study also showed that the average tenancy length in Greater London dropped in the last two years from 27 months to 22 months, suggesting landlords are favouring shorter leases.
"And we can expect tenancy lengths to decrease in 2012, as the level of high value short term rentals increases in 2012 during the Olympic Games, which is positive news for letting agents," added Mr Boyle.
It follows the release of figures by buy-to-let lender Paragon Mortgages this week, which revealed that rental incomes are increasing across the country.
A survey of landlords found that 34 per cent saw the amount of income they made in rent increase during the third quarter of the year, compared to 29 per cent who said the same thing in the previous quarter.
Just four per cent reported a fall in rental income.
Social media