The Buy-to-let index published by the LSL Property Services PLC Group will make encouraging reading for many buy to let clients. The index shows that rents rose on average by 0.8% to £692 as annual rent inflation increased to 4.4%.

The average yield reached 5.1% in April as rents increased at a faster rate than property prices.

Monthly rents in London have been rising at the fastest pace in the country over the past year, increasing by 7.9% since April 2010, reaching £988 in April 2011.

Tenant arrears increased in April, with 11.8% of all UK rent unpaid or late by the end of the month.

LSL warn landlords to be vigilant, especially over the medium term. David Newnes of LSL Property Services comments: “We are yet to see the true picture emerge from public sector spending cuts, and changing employment situations will hamper many tenants’ ability to meet their monthly rent cheque on time”.

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