New Website Gives Property Owners Inside Look At Landlord Insurance Premiums
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Expert Landlord Insurance opens doors for UK landlords to get the best available rate on insurance
According to an article released online by The Guardian, property rents in London continue to rise, having gone up a full 10% in the last year alone. The cost of rent has risen at such a pace that they have surpassed average earnings and now increase at double the rate of the average UK workers salary. The monthly cost of renting a home in the UK went up by an average of £10, reaching an average of £747 in June of this year – a year-on-year increase of 1.4%.
With the increases in rent and the fact that roughly nine million people in the UK are currently renting the property they live in, the buy-to-let investment sphere has reached a peak in profitability. Also reported by The Guardian, the average returns from buy-to-let property investment hit £19,475 in the last 12 months, which includes a rental income average of £8,158 and a capital gain of £11,317. The article went on to state that “the average buy-to-let investor in England and Wales could expect to make a total annual return of 13.4% over the next 12 months. That is equivalent to £23,718 per property.” Furthermore, the CML released statistics demonstrating that the number of buy-to-let mortgages have increased significantly, replacing remortgages at a rate of 21% per annum. These loans have risen a full 38% since May of 2013, a total of £1.1 billion in value.
To further quote The Guardian, it was stated that “There are up to 1.4 million individuals renting out small strings of properties as a sideline or in some cases as their main income and more people are expected to join their ranks in the coming months.” These numbers are hardly surprising when the potential for profitability is taken into account. In fact, most buy-to-let landlords are currently working towards or planning on expanding the number of homes they own. A buy-to-let broker, Mortgages for Business, was quoted as saying that “60% expect to buy properties over the next six months.”
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