A recent survey by Letting Agency Network LSL Property Services has advised that the average rent paid by tenants in England and Wales reached a record monthly high of £692.00 in April. This is an increase of 0.8% compared with the previous month and was 4.4% higher than a year earlier.
This very much accords with the reports I am receiving from the Scottish rental market in general and Dundee and the near surrounding area in particular. With first time buyers still not being able to get on the property ladder but still requiring to move or set up on their own there is an increasing tenant demand for properties. Following a recent discussion with a property investor client I would reiterate that I think this situation is a win win for property investors. At this stage buyers can purchase properties at a good price and achieve a good rental yield. At the point that rental demand starts dropping, the main reason for which would be the banks starting to support first time buyers getting on the property ladder, then you will see substantial capital appreciation and increasing ability to resell your property for a higher price than at which you purchased it.
I would remind you of the Property Investor Seminar on 23 June 2011. To register please e-mail Lesley Rorrison – firstname.lastname@example.org.
I will continue to report on trends.
Head of Property Services