UK’s biggest agent says, now is the best time to buy-to-let

Countrywide has reported, that in the first quarter of this year rents increased and rent arrears declined and lettings times became quicker.

The biggest property chain says they supply the ideal recipe for buy-to-let investors. It places average UK rental yields at 6.2%.

The Countrywide results, based on over 50,000 properties, is believed to be the biggest index of its kind, covering the whole of the UK.

The data shows that rent increased the most in Wales and the East of England, to £616 and £814 per month. The average rents in Outer London went up by 5.4% year on year to £1,107 per month. Inner London had the highest rents at £2,387 per month in the first three months of this year, up 1,9% from the previous year.

Nevertheless, rents decreased in the South East, down 1.1% to £1,054 per month.

Average rents also fell in Scotland, down 2.6% to £580 per month. Scotland was also the only place in the UK with a rise in arrears, up 2.6% from the previous year to 6.6% of the rent roll.

The highest arrears of rents due was in Central London at 7.3%, regardless of the fall of 0.1% over the year.

The study indicated that increasing rents and stabilising house prices are making rental yields very attractive to investors, with the average yield 6.2%. The largest rental yield was in Wales at 6.7% closely followed by both the North and Midlands at 6.5%. The lowest rental yield was in Central London at 4.6%.

Based on the average yield and the QI 2013 average monthly rent of £835, the average investor could anticipate to make a total annual profit of roughly £10,000 over the next 12 months per property.

Countrywide uncovered that the average time it took to rent out a property in the first three months of 2013 was 14.5 days, down on last year when it was 15.1 days.

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