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UK Drops To 25th In EU Buy to Let Rental Yield

As a landlord you will no doubt be seeking to obtain the best rental income yield possible on your investment property as well as hoping for a progressive increase in the property’s value. So, how is the UK doing in respect of rental yields in comparison to other countries in the European Union (EU)? Well, according to WorldFirst’s European Buy to Let league table, the UK has unfortunately seen its placing fall to 25th in respect of average rental yields on buy to let properties. Here in the UK the average yield is 4%. It is disappointing to see that the UK is now fifth from bottom of the league table with Austria, France, Croatia and Sweden below us. Sweden is at the bottom of the league table with an average rental yield of 3.03%. So, which EU country is at the top of the table? Well, you would only have to travel over the Irish Sea to Ireland that features in number one spot with an average rental yield of 7.08%. That is a significant difference to that of the UK. In second place is Malta with an average rental yield of 6.64%, in third place is Portugal at…

Number Of Landlords Falls

According to the Countrywide PLC Monthly Lettings Index that was produced for August 2017 the number of landlords here in the UK has gone down by a significant number. In fact, the reduction is 154,000 since 2015. However it is interesting that the number of rented homes has gone up by 171,000. On that basis, this would indicate that a lower number of landlords are renting out more residential properties. In fact, on average a landlord is now renting out 1.44 residential properties whereas back in 2010 the figure was 1.24 homes. This is a significant difference. Between 2007 and 2017 there has been a 33% rise in the number of landlords who are the owners of 10 or more investment residential properties. It is also interesting that back in 2010, 86% of landlords owned just the one investment residential property whereas this year the figure had dropped to 73%. Rental income increased by an average of 1.6% to £954 per calendar month in Great Britain when comparing August of this year with August 2016. It was the South West that saw the largest increase in rental income between the above period with rents rising by an average of 4.7%….

Has Your Tenant Told You About Their Pet?

Here in the UK we are a nation of pet lovers. Whether it is a dog, cat, hamster or a goldfish many families welcome them into their homes and they are very much part of the family for a number of years. However, that is fine if the person bringing a pet into their home actually owns the property as it is up to him or her as to whether they are agreeable to a pet taking up occupancy. It can be quite different if the family wants a pet dog or cat but they are in rented accommodation. The decision as to whether pets are aloud in the home lies with the owner of the property i.e. the landlord and not all landlords are prepared to allow pets in their properties. A survey carried out by Animalfriends.co.uk that provides insurance for pets discovered that over a quarter of those people taking part in the survey did not inform their landlord that they owned a pet and kept it in the tenanted property. Doing this is not right as the landlord may not like having pets in the property as a pet can cause damage and leave smells. If a…

Rental Yields Concern Landlords

Based upon some research, it would appear that rental yields are concerning a number of landlords here in the UK. Many landlords are dependent upon the rental income to cover the running costs of the investment property such as meeting the mortgage repayments, paying for maintenance to the property, paying landlord insurance premiums and paying for the services of a letting agent to manage the property. Information has been produced by the National Landlords Association (NLA) that makes for interesting reading. The statistics reveal that the percentage of landlords who are happy to rely on a regular rental yield has reduced by 15% between Q2 of 2015 and Q2 of 2017. We are sure that you will agree that is a significant drop. This is interesting when you consider that the average rental yield has hovered in the region of 6% per annum for quite a number of years. Some research has been undertaken into the different average rental yields that are achieved in various regions around the UK. For instance, rental properties in East Midlands produced the greatest yield with an average of 6.9%. The North West of England was in second place with an average rental yield of…

Significant Number Of MPs Are Landlords

Landlords come from all walks of life here in the United Kingdom. Some purely earn their living from renting out properties whilst a number of others have other occupations such as teachers, doctors and solicitors. Some interesting research has been carried out by Channel 4’s FactCheck that includes the number of MPs in the UK parliament who rent out properties. In fact, there are 123 MPs who do so including some members of the Government. The above figure equates to not too far off 20% of MPs. We are sure you will agree that is a significant percentage. However, why should an MP not be able to buy an investment property and rent it out to earn additional income just like someone who is say a dentist or a surveyor. There are 87 Conservative MPs, 28 Labour MPs, 3 SNP MPs, 3 Liberal Democratic MPs, 1 DUP MP and the Speaker of the House of Commons. That means that 28% of Conservative MPs let out properties, 11% of Labour MPs do the same, 9% of SNPs rent out investment properties, 25% of Liberal Democratic MPs do this and 10% of DUP MPs rent out properties. The above figures may not…

Rental Deposits To Be Capped

If you are a landlord whether that be one who has been involved in the but-to-let market for a number of years, someone who has recently entered the market or you are considering purchasing your first investment property to let out to tenants then you may be interested to note that it was recently announced in the Queen’s Speech that there is to be a cap placed upon the level of deposit a landlord can insist on. Landlords will only be able to hold a deposit of one month’s rent. This decision may concern some landlords. In fact, it is estimated by the National Landlords Association that in the region of 40% of deposits are for in excess of 40% of one month’s rent. Some landlords may be concerned that this is not a big enough deposit. This could be because there will be a number of prospective tenants who landlords feel are more likely to not take care of the landlord’s property and that the deposit is no where near enough to cover the cost of any repair work. This may mean that some landlords will be reluctant to allow some people on lower incomes to become tenants in…

Average Rent Falls In May

Landlords and tenants may wish to read the HomeLet Rental Index covering May 2017. It provides some interesting information about rental payments being charged by landlords. In respect of new tenancies, the rent being charged on UK investment properties in May was an average of £901 per month. When compared with May 2016, this figure was 0.3% less and is the first time that a reduction in rental income has been seen since December of 2009. It is Greater London that has seen the largest percentage drop with a reduction of 3% when compared with May last year. The average rent being charged in that part of the UK was £1,502 per month. The North East saw a fall in rental income in May of this year with a 2.3% reduction over a period of 12 months to an average of £522 per month. Scotland saw a drop in rental income in May 2017 when compared with the same month last year. Rental income fell by 1.9% to an average of £622 per month. The South East saw rental income drop in May 2017 by 1.5% to an average of £998 per month in comparison to May 2016. Yorkshire and…

Why Is Home Insurance Not Suitable To Cover Rental Properties?

If you are a landlord and own a property that you let out to tenants then you will no doubt wish to make sure that you have adequate insurance in place to cover the likes of the building, fixtures and fittings and contents. A standard home insurance policy that is arranged to cover a residential property is not suitable for rental properties as there are a number of specialist risks that you may want to insure relating to your rental property. For instance, if one of your tenants was injured in the property that he or she is renting from you perhaps due to say a gas explosion then they may try to sue you for damages. Landlords insurance should cover such a situation. In the event that the tenant is unable to maintain their rental payments then landlord insurance would often provide the option of providing some form of rental guarantee scheme. This would at least provide some financial support towards paying bills and may be of particular benefit if the investment property has been purchased with the assistance of a buy-to-let mortgage. Should there be the need to call out the likes of a plumber or electrician in…

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