Rents reach new record highs
An increasing number of people are investing in buy-to-let properties as the average UK rent reaches a new record high.
According to the latest rental price index from property portal findaproperty.com, the average cost of renting a home in the UK soared by two per cent in the second quarter of 2011 to hit £867 a month by the end of June - the highest amount ever recorded, the Guardian reports.
The increase is bringing significant rewards for investors in buy-to-let properties, with the average gross rental yield reaching 4.75 per cent in the last quarter.
Indeed, rising rent appears to be attracting an increasing number of people to UK property investment, with the index showing a 9.7 per cent jump in the number of properties being offered for rent in the three months to the end of June.
Samantha Baden, property analyst at findaproperty.com, told the newspaper: "Demand for rented property is soaring across the UK as people find they can't afford to buy. Average rent of £876 is the highest on record and we are now seeing more rental properties coming onto the market as landlords look to take advantage of the increasing returns.
"In time this may start to bring rental prices under control but we expect to see rental prices continuing to rise for the foreseeable future."
It is thought that rising rents are down to a surge in demand from tenants resulting from an increasing number of people being priced out of the owner-occupier market,
Matt Griffith of first-time buyer website PricedOut commented: "In some markets - notably London - competition is intense, and the insecurity of renting means that turnover of tenants and the passing on of rent increases are rapid."
Last month, the Association of Residential Letting Agents issued a checklist of tips to help potential tenants find rented accommodation in today's competitive market.
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