Latest news with #buytolet
Yahoo
a day ago
- Business
- Yahoo
Average rent surges to £2,712 in London and £1,365 across UK
The cost of rent in London has climbed for a 15th consecutive quarter to hit a record high of £2,712 per month, while tenants across the rest of the UK are paying on average £1,365. The data from property site Rightmove (RMV.L) showed that new tenants are now paying an average of £417 more in monthly rent compared to 2020. This is a 44% increase in rents, well above the 36% rise in average earnings over the same period. Rightmove's property expert Colleen Babcock said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants." "Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants. The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.' Read more: How to get the best currency exchange deal for your holiday money Commuter belt towns and traditionally lower-rent northern regions saw the steepest increases. Ascot in Berkshire saw the largest annual jump, with average rents climbing 21% from £1,863 to £2,259 year-on-year. Farnham in Surrey followed closely with a 19% increase, amid strong demand in affluent areas within commuting distance of London. Northern towns such as Rochdale and Stockport in Greater Manchester saw rents rise by 17% and 15% respectively, pushed by a combination of low base prices and growing demand from remote workers seeking affordability. Glasgow, Scotland's largest city, also registered a 12% rise to £1,219 per month. Several towns in the North West, including Birkenhead and Prenton on the Wirral, recorded rent increases of 11%, amid a wider trend of price pressures moving beyond traditional hotspots. Watford, Andover, and Kidderminster each saw double-digit increases. Average advertised rents for new properties in London rose by 0.5% this quarter to £2,712 per calendar month, a 15th consecutive record for rents in the capital. The number of available rental homes has risen by 15% compared to last year, with the North East seeing the largest jump (33%). Despite this, the number of available properties remains 29% below pre-pandemic levels. At the same time, tenant demand has dropped by 10% year-on-year, leading to a reduction in competition for rental properties. The average number of enquiries per typical rental property now stands at 11, down from 16 last year, but still higher than the 7 enquiries per property in 2019. As supply increases and tenant demand softens, homes are taking longer to let. The average time for a rental property to be marked as 'let agreed' has risen to 25 days, up from 21 days last year and 18 days in the height of the pandemic market in 2022. Moreover, nearly one-quarter (24%) of rental homes have seen a reduction in price during their marketing, the highest proportion since 2017. Read more: 9 air-conditioned homes to help you beat the heat Alex Caddy, manager at Clarkes Estate and Letting Agency, pointed at a marked shift in the rental market in 2025. He said: "After several years of sharp rent inflation post-pandemic, tenants hit a ceiling by late 2024, leading to widespread price slowdowns. Competitively priced, well-presented properties continue to attract strong interest, while some landlords have exited the market due to rising regulatory and financial pressures. However, many of these properties have now re-entered the rental sector, contributing to higher supply levels." Caddy also highlighted an emerging challenge in the student rental sector, where a cut in university intake for 2025 has left many houses in multiple occupation (HMOs) unlet for the September term. Andrew Ralph, managing director of Lettings at Leaders Romans Group, said: "We're seeing a shift in the rental market this quarter. Stock levels are up, and demand remains strong but more measured. Pricing correctly from the outset is key, and being quick to adjust prices in response to market conditions is vital to avoid void periods." He added: "Tenant affordability is a key focus, and matching the right tenants to the right homes is becoming more important than ever. Despite some landlords exiting, the volume remains consistent, and we're seeing a new generation of professional, tech-savvy investors entering the market." Read more: The big tax change set to push vulnerable people out of work Best cash-saving deals paying up to 7.5% Mortgage rate war heats up with Barclays dropping to 3.75%Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Average rent surges to £2,712 in London and £1,365 across UK
The cost of rent in London has climbed for a 15th consecutive quarter to hit a record high of £2,712 per month, while tenants across the rest of the UK are paying on average £1,365. The data from property site Rightmove (RMV.L) showed that new tenants are now paying an average of £417 more in monthly rent compared to 2020. This is a 44% increase in rents, well above the 36% rise in average earnings over the same period. Rightmove's property expert Colleen Babcock said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants." "Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants. The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.' Read more: How to get the best currency exchange deal for your holiday money Commuter belt towns and traditionally lower-rent northern regions saw the steepest increases. Ascot in Berkshire saw the largest annual jump, with average rents climbing 21% from £1,863 to £2,259 year-on-year. Farnham in Surrey followed closely with a 19% increase, amid strong demand in affluent areas within commuting distance of London. Northern towns such as Rochdale and Stockport in Greater Manchester saw rents rise by 17% and 15% respectively, pushed by a combination of low base prices and growing demand from remote workers seeking affordability. Glasgow, Scotland's largest city, also registered a 12% rise to £1,219 per month. Several towns in the North West, including Birkenhead and Prenton on the Wirral, recorded rent increases of 11%, amid a wider trend of price pressures moving beyond traditional hotspots. Watford, Andover, and Kidderminster each saw double-digit increases. Average advertised rents for new properties in London rose by 0.5% this quarter to £2,712 per calendar month, a 15th consecutive record for rents in the capital. The number of available rental homes has risen by 15% compared to last year, with the North East seeing the largest jump (33%). Despite this, the number of available properties remains 29% below pre-pandemic levels. At the same time, tenant demand has dropped by 10% year-on-year, leading to a reduction in competition for rental properties. The average number of enquiries per typical rental property now stands at 11, down from 16 last year, but still higher than the 7 enquiries per property in 2019. As supply increases and tenant demand softens, homes are taking longer to let. The average time for a rental property to be marked as 'let agreed' has risen to 25 days, up from 21 days last year and 18 days in the height of the pandemic market in 2022. Moreover, nearly one-quarter (24%) of rental homes have seen a reduction in price during their marketing, the highest proportion since 2017. Read more: 9 air-conditioned homes to help you beat the heat Alex Caddy, manager at Clarkes Estate and Letting Agency, pointed at a marked shift in the rental market in 2025. He said: "After several years of sharp rent inflation post-pandemic, tenants hit a ceiling by late 2024, leading to widespread price slowdowns. Competitively priced, well-presented properties continue to attract strong interest, while some landlords have exited the market due to rising regulatory and financial pressures. However, many of these properties have now re-entered the rental sector, contributing to higher supply levels." Caddy also highlighted an emerging challenge in the student rental sector, where a cut in university intake for 2025 has left many houses in multiple occupation (HMOs) unlet for the September term. Andrew Ralph, managing director of Lettings at Leaders Romans Group, said: "We're seeing a shift in the rental market this quarter. Stock levels are up, and demand remains strong but more measured. Pricing correctly from the outset is key, and being quick to adjust prices in response to market conditions is vital to avoid void periods." He added: "Tenant affordability is a key focus, and matching the right tenants to the right homes is becoming more important than ever. Despite some landlords exiting, the volume remains consistent, and we're seeing a new generation of professional, tech-savvy investors entering the market." Read more: The big tax change set to push vulnerable people out of work Best cash-saving deals paying up to 7.5% Mortgage rate war heats up with Barclays dropping to 3.75%Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Buy-to-let rents bringing in 7% returns to landlords
Landlords are getting around 7% returns on their rented properties as high interest rates amid a cost of living crisis are keeping Britons from jumping on the housing ladder. According to figures from UK Finance, the average gross buy-to-let rental yield in the UK in the first three months of the year was 6.94%. That is a slight increase from 6.88% in the same quarter last year. The returns appear to be attracting more investors into the buy-to-let market, with 58,347 new buy-to-let loans advanced in the UK in the first quarter, a 38.6% increase. These loans totalled £10.5bn, which is again an increase (46.8%) compared to the same time last year. Richard Donnell, executive director at Zoopla, said: "Activity from buy-to-let landlords is starting to increase as mortgage rates stabilise and yields from residential property move higher as rents rise faster than house prices. "The big landlord sell off is coming to an end after a decade of tax changes and higher borrowing costs that saw many landlords reconsider their strategy and property holdings. As base rates start to fall, we are likely to see a continued increase in demand from landlords with a greater focus on strength and quality of cashflow rather than house prices inflation." Read more: Average London rent surges to £2,252 a month The average interest rate across all new buy-to-let loans in the UK was 4.99% in Q1 2025. This was 10 basis points lower than in the previous quarter, and 41 basis points lower than in the same quarter of 2024. However, at the end of Q1 2025, 11,830 buy-to-let mortgages were in arrears greater than 2.5% of the outstanding balance, down 780 from the previous quarter. Nathan Emerson, CEO at Propertymark, said: 'It is positive to witness what we hope is a wider scale revival in buy-to-let lending across Q1 of 2025. This trend has likely been encouraged by interest rates on buy-to-let loans being lower than they were in the same quarter for 2024. These numbers demonstrate that more competitive interest rates are helping to attract more people to the buy-to-let market. 'However, with mortgage possessions up this quarter from the same quarter a year previously, these figures also highlight there are still significant affordability issues for those engaging in buy-to-let borrowing in recent years. 'The Bank of England continues to work hard managing inflation levels, and the direction of travel here will prove key within all base rate decisions moving forwards.' In the first quarter of 2025, 810 buy-to-let mortgage possessions were taken, up 28.6% from the same quarter a year earlier. Read more: First-time buyers on £30k salary now able to apply for mortgage 'Buy-to-let lending in the first quarter of the year was the highest seen since the mini-budget and in line with pre-pandemic levels, primarily driven by a surge in new purchase activity ahead of the changes to stamp duty thresholds at the end of the quarter,' said Louisa Sedgwick, managing director of mortgages at Paragon Bank. 'This shows that with the right market conditions landlords will invest. Demand currently exceeds supply and is forecast to continue, driven by factors such as population increases and household formation changes. 'To meet this demand and help to moderate rent inflation, as well as to provide a home to millions of tenants across all walks of life, it is essential to facilitate an attractive investment environment with balanced regulation and economic stability."
Times
12-07-2025
- Business
- Times
Will new tax rules mean holiday lets aren't worth the hassle?
We own three buy-to-let properties already, and instead of adding a fourth standard rental, my wife and I are tempted by the idea of buying somewhere we could enjoy ourselves. We visit the Lake District regularly and it would be nice to have our own place there. The plan would be to use it for family holidays but rent it out as a holiday let for most of the year to cover the mortgage and running costs. But I keep reading about tax changes affecting holiday lets and new rules about planning permission and licensing. Are we being naive in thinking this could work both financially and practically? I don't want to end up with an expensive second home that's more hassle than it's Guildford The timing isn't great for getting into holiday lets. The tax advantages that once made them attractive compared to standard buy-to-lets have disappeared: in April 2025, the Furnished Holiday Lets regime was scrapped. Previously you could deduct mortgage interest in full, claim capital allowances on furniture and pay only 10 per cent capital gains tax when you sold. Now such properties are taxed as if they were standard buy-to-lets, which means owners are facing significantly higher bills for the same level of profit. • Read more expert advice on property, interiors and home improvement You'll also need to balance your personal use with letting carefully to hit the thresholds that allow you to qualify for business rates rather than council tax. In England (with variations elsewhere), your property needs to be available for letting at least 140 nights a year and actually let for 70 nights. Miss those targets and you'll have to pay council tax — potentially with a 100 per cent second-home premium on top, which is being enforced by many councils in holiday hotspots. The regulatory side is becoming more complex too. In England a national registration scheme for short-term lets is still in the pipeline, as are new planning restrictions. While existing holiday lets will receive permission automatically, local authorities will be able to use Article 4 directions to stop you converting a family home or a buy-to-let into a holiday let. Putting tax and regulation aside, your biggest challenge is balancing personal use with earning potential. For example, if you want to stay there during the school holidays, you're giving up the property's best earning weeks. So you need to decide whether you're treating this primarily as an investment or lifestyle purchase. If it's purely about the numbers, run them using conservative occupancy rates and realistic costs — including your own time dealing with bookings and guests. If it's more about having somewhere nice for the family, that's fine — but work out what that will actually cost you compared to putting the same money into another buy-to-let and paying for your holidays out of pocket. Our view is that holiday lets are going through the same transition the wider buy-to-let sector has experienced over the past decade: it's still possible to do well if you take it seriously as a business, but it's becoming much less attractive for casual operators and many of the less committed players will be shaken out. You can probably make it work if you're determined, but having the best of both worlds — great family holidays and strong investment returns — probably isn't realistic any more. Submit your questions for the Two Robs at Rob Dix and Rob Bence present The Property Podcast and are co-founders of the property education platform Property Hub. Buy Rob Dix's book, Seven Myths about Money (Cornerstone £18.99) from or call 020 3176 2935. Discount for Times+ members
Times
11-07-2025
- Business
- Times
Is this the best town in Britain for landlords?
T he letting agent Ashley Leaper says there has never been as much excitement about buy-to-let in her town. In the past year her company, Letting Angels, which she started in Redcar more than 20 years ago, has had a surge of calls about rental properties. 'International interest has increased,' said Leaper, 47, who has an office in the centre of Redcar. 'We're getting more calls from investors overseas, especially expats.' Her experiences, however, do not reflect the general state of the buy-to-let market, suggesting that her North Yorkshire town is bucking the trend. Tighter regulations, stamp duty rises, the removal of tax breaks and new energy efficiency rules have increased costs for buy-to-let owners, making it harder for them to make a profit — driving landlords out of the market rather. HM Revenue & Customs research in May found that one in five were looking to sell up in the next 12 months.
