Kate Faulkner's Latest Summary and Analysis of Rental Reports
publication date: Oct 30, 2012
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author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
Kate Faulkner's Latest Summary and Analysis of Rental ReportsThere are five regular reports on the rental sector, some cover the UK and some that cover just England and Wales. Here is a summary of the report headlines and latest data:- Report headlines:-
Average Rents ![]() Kate Faulkner comments "Headlines of ‘highest rents ever seen' content are misleading for government policy makers, landlords and tenants. The reality is Homelet and Acadametrics/LSL are quoting ‘highest prices' for the HISTORY of their rental indices - which is only a couple of years. In comparison, the RICS, Paragon and Belvoir Lettings, whose indexes go back five or more years and they show rents are ‘recovering' to previous heights achieved back in 2008. "In addition, you can't use rental trends as we use property price indices. Most tenants are paying the same rent as they have done for several years, if not more. The rental indices are only picking up the small number of people entering the market or moving from one home to another rental property. In addition, rented new builds can severely skew the figures as they typically attract higher rents." ![]() Kate Faulkner comments "Yields are critical to a landlord as they help landlords assess whether their investment in property is performing better or worse than other assets. The yields above however reflect earnings based on current average property prices versus average rents, so doesn't reflect actual yields that landlords would be earning from properties bought in earlier years." Capital Growth for Landlords
Kate Faulkner comments "Capital growth is quite tough to achieve at the moment in most areas, so it's a bit of a surprise that indices are picking up increases in the asset value of properties. I think this increase should be looked at with caution, as many landlords who bought from 2005 or 2006 will be lucky to have achieved any capital growth since then". Demand for Rented Properties
Kate Faulkner comments "Many people are actively entering into the
rental sector as a tenure of choice. Rental accommodation and landlords are not
what they used to be 15 years ago. Many properties rented out are actually
brand new and with the increased regulation, a legally let property is actually
safer to live in than one you buy where there are little legal requirements to
make sure it's structurally safe". NEED HELP FROM THE DESIGNS ON PROPERTY EXPERTS? Email enquiries@designsonproperty.co.uk for a one of our FREE Property Checklists. Do you have a property question? GET AN INDEPENDENT ANSWER! ASK US via our PROPERTY FORUM, email enquiries@designsonproperty.co.uk or call 0845 838 1763.
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