Average Rental Values Increase
If you are a landlord then you will no doubt wish to maximize the rental income that you receive on your investment property. You will probably look to periodically increase the rent that your tenants pay.
You may be interested in what is happening to rental values around the UK so the following information extracted from the HomeLet Rental Index should hopefully prove informative. The rental amounts relate to new tenancies for the month in question obtained from their reference service for tenants.
Apparently, in April 2016, the average rental value in the UK for properties outside London amounted to £764 pcm. In April 2015 the amount was £728 pcm so we have seen an increase of 5.1% in the last 12 months.
It is interesting that in Greater London the average rental value has increased by 7.7% when comparing April 2015 with April 2016 to £1,543 pcm. The biggest % increase was witnessed in Scotland where rental values went up by an average of 11.4% in the 12 months between April 2015 and April 2016. In the North West average rental values actually dropped by 1% when comparing April last year with April this year.
The West Midlands saw a rise of 2.2% in average rental values to £659 pcm up from £644 pcm in April 2015. However the East Midlands saw a big rise in average rental values with an average of £646 pcm being paid by private tenants in April 2016 compared to £599 in April last year – a rise of 7.9%. Wales saw average rental values rise by 4.3% – up from £573 pcm in April 2015 to £597 pcm in April of this year. In the South West average rental values rose by 3.2% to £891 pcm in April 2016 up from £863 pcm in April 2015.
We trust that some landlords have found the above information to be of benefit to them. Further data is available on HomeLet’s website so you may wish to take a look at it.