“It's the perfect time for buy-to-let, according to Countrywide”

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The information contained here has been supplied to us by the renowned surveyors Countrywide and is not just the opinion of the agents at NELSONS. The Countrywide data is generally believed to be the largest index of its kind, it is certainly the most comprehensive, it's statistics are gathered across the whole of the United Kingdom and collectively covers over 50,000 individual  dwellings.

“On average rents rose, rent arrears fell and lettings times became faster in the first quarter of this year”, Countrywide reported.
The largest property chain further states, due to these changing circumstances it now provides the perfect climate 'for buy-to-let investors'. The UK rental yields are said to average at 6.2%.

 

The Estate agents' Shoreditch office supported the information, confirming:

“The highest rents recorded this year were in Inner London which have risen to £2,387 per month in the first quarter of this year, up 1.9% from the previous year, while average rents in outer London rose 5.4% year on year to £1,107 per month, however contrary to the norm rents declined in the South-East, down 1.1% to £1,054 per month.”

The facts provided in this survey show that rising rents and stabilising house prices together with the lowest interest rates in modern history certainly make rental yields highly attractive to investors, with the average yield at 6.2%. The highest rental yield was in Wales at 6.7% closely followed by both the North and Midlands at 6.5%. The lowest rental yield was in Inner London at 4.6%.

Perhaps not surprising, due both to it's popularity and highest rents countrywide, Inner London also puts claim to the highest arrears at 7.3% of rents due, despite a drop of 0.1% over the year.

To insure balance in this instance, as with any serious investment, clients should view information in a broader scope because any survey may have flaws. Compare the following which seem to invalidate the Countrywide report:

“Templeton LPA, part of LSL, says that in the first three months of this year, the number of tenants in severe arrears – people more than two months behind on their rent – rose by 4.8% on the previous quarter.  Beware, they address different specifics and do not negate any of the other facts mentioned, we at NELSONS merely need to ensure that not one of our clients will be led down the garden path with biased facts.

The return on investment possibilities at present are exceptionally attractive, based on the average yield and the Q1 2013 average monthly rent of £835, the average investor could expect to receive a total annual return of approximately £10,000 per property over the next 12 months.

COUNTRYWIDE further found that the average time it took to let a property in the first quarter of 2013 was 14.5 days, down on last year when it was 15.1 days. Pretty neat when you envisage you could have a tenant waiting to occupy your newly purchased property before the final papers are processed.

Whether you are an owner letting in Kings Cross, an investor looking for houses for sale in Islington, a tenant looking for a place to unpack your boxes in Lambeth, altogether the market is attractive, just promise yourself you will not be coaxed into any deal looking through the end of a rose coloured bottle.

When you are serious about any property in any respect, speak to NELSONS for honest unbiased guidance and advice, then meet with your auditor before you return to our office to sign.