The Telegraph (17th April) devoted the front page of its property section to a long article on the lettings market. Apparently it is booming with agents reporting plenty of would be tenants and not enough properties. A London agent said she has 60% fewer properties on her books than a year ago and the same number of tenants. The bullish attitude has spread to other parts of the country with the article quoting agents in Devon, the Cotswolds, Nottingham and Scotland. They are all saying the same; rising demand and rising rents.
The agents Savills and the website Globrix have worked out average yields for typical properties in different part of the country. In other words how much rent you would earn as a percentage of the value of the property. They suggest that the best yields at the moment are from one bedroom flats where you can earn as much as 6% and the worst are four bedroom houses at 3.8%. Scotland seems to be the best area for yields and the South West the worst.
What no one knows is what will happen to rents and property prices in the future. The statistics always look backwards and prospective landlords need to be comfortable that the deal they are putting together to finance a buy to let purchase will make sense even if the market turns down.
If you own or are thinking of investing in a buy to let property remember that you should also purchase let property insurance. Buy to let insurance will cover you for certain occurances whilst your property is let and gives you piece of mind over your investment.