Rents across England and Wales have increased by 16.3 per cent between 2010 and 2015, according to the latest Buy-to-Let Index from Your Move and Reeds Rains.
The average rent in January 2015 was £763, which is £107 higher than five years ago.
Over the past year, the increase in rents was 2.8 per cent.
Adrian Gill, director of estate Reeds Rains and Your Move agents, comments: “The nature and affordability of UK housing is transforming before our eyes. In the last five years the private rented sector has successfully absorbed an unprecedented influx of tenants, while rental prices have broadly tracked inflation.
“As with the purchase market, the only clear way to make rented housing dramatically more affordable is to build far more homes, far more quickly than is currently the case. And until this happens, landlords are likely to continue to earn double digit returns on their investments.”
The average landlord in England and Wakes has received a return of £20,072 (this is before deductions such as mortgage payment and maintenance). Of this amount £8,021 come from the rent and the rest is capital gain (£12,051).
“More investment is still needed in the private rented sector. Not only do rental properties provide an essential service, giving people who can’t yet afford to buy the mobility to seek out work – they are among the most stable investments available. More landlords on the market can only be better for tenants, allowing prospective renters more choice,” Gill says.
