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Monday, August 24, 2015

Average rent breaks £800

'Your Move' and 'Reeds Rain's' latest  buy to let index reports average rents in England and Wales have broken through the £800 barrier for the first time since the chains began collecting data.

Data from July saw a monthly rise of 1.9% on average rents, up from £789 to a record high of £804.

According to the agency chain average rents are up 6.8% year on year.

Despite rent rises the index reported a fall in the average landlord's annual returns, down from 12.5% a year ago, to just 8.7%, due to the slowing of capital growth.

The average annual capital gain for each landlord over the 12 months to July, stands at £15,632, of which £7,188 was from property price increases and £8,444 from rental income. 

Director, Adrian Gill, commented 

‘House price growth is easing back and this has had an effect on total annual returns. However, rental yields are perking up to compensate. The mortgage market has stabilised after a post-election bounce, and the current political stability makes for clear sailing in the buy to let market despite the chronic housing shortage. With mortgage repayment rates so low and returns still remarkably enticing, there’s rarely been a better time to invest in rental properties,’

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