It was interesting to read in the news that Buy-to-let investors in England and Wales enjoyed total returns of nearly 10% in the past year.
This was made up of rental yields of 5.2%, while rising property prices took total average annual returns to 9.4% according to the latest Buy-to-Let Index. Also, interestingly was that rental growth was seen in the market with rents soaring to an all-time record of £816 a month in September, versus £768 a month in September 2014.
This is a rise in rental values of c6.3% against inflation figures of flat (Consumer Price Index). Looking even further back it was interesting to note that rents are now 24% higher than in January 2010, while the index of CPI inflation is just 14.1% higher, meaning rents have risen by 10.3% in real terms since the start of the decade.
As we continue to recommend at Osprey Lettings; total returns from residential property investment are a mix of rental yields, capital growth and underlying rental growth; which all combine into an attractive investment proposition.
We are busy across our offices in Kettering and Oakham seeking investment properties for our clients who seek to enter the market, or existing landlords looking to expand their portfolio. Our search is not simply restricted to these local markets either, and we are active in the wider East Midlands market, for example in Northampton, Peterborough and Leicester.
If we can be of any assistance with your search for property investments, or offer advice on lettings and management please do let us know.