Leicester Is a Top Performer for Buy-to-Let Landlords
There are numerous benefits to being a Leicester landlord, especially with the help of the Keywest team, but the buoyancy of the city’s rental market and the excellent yields on offer have got to be right up there when it comes to the advantages on offer.
New data shows that the East Midlands experienced a 2.24 per cent rise in residential rents, marking the quickest rise of any British region over the year ending in February. The increase experienced in our region was over three times the 0.69 per cent UK average.
Within the region, the Landbay Rental Index revealed that Leicester rents went up by 3.42 per cent on a national basis, followed by Nottingham with a 3.30 per cent rise. Both of these were well above the current UK inflation rate of three per cent.
Landbay founder and chief executive officer John Goodall said that just like Britain’s weather of late, the rental growth measured in February was heavily affected by activity in the East. He said the East was an ‘increasingly attractive’ area for buy-to-let landlords thanks to the affordability on offer.
In Leicester, rental growth was heavily driven by three-bed and one-bed properties. Rents for the former went up by 5.01 per cent, while the latter experienced increases of 4.03 per cent. Rents for two-bedroom properties went up by 1.41 per cent year on year.
Goodall said that these figures meant that landlords in Leicester seeking new investment opportunities may find it pays to consider the bedroom numbers in the properties they might consider buying in order to tap into the trends in the market.
The East Midlands was followed by the East of England, which had the second quickest rental growth with a figure of 1.58 per cent. Within this region, Peterborough saw a rise of 2.99 per cent and Cambridgeshire rents grew by 2.24 per cent. In contrast, however, rents in Luton fell by 0.13 per cent. This came as a surprise to some, as the town was cited as one of the fastest growing areas at a similar point in 2017.
Average rents in the East now stand at £910, according to the Landbay figures, whilst the East Midlands’ average of £626 demonstrates the excellent value on offer for both renters and buy-to-let landlords. This is especially evident when compared with the British average rent, which currently sits at over £1,000 (£1,199) per month. This is a 0.69 per cent rise on the same period in 2017.
On average, rents in the English capital continue to be 2.5 times higher than those seen in the rest of Britain. London now has an average of £1,878 compared to £761 for other areas of the UK combined. In the South East, meanwhile, the rental average is measured at £1,053. Goodall believes rent rises will continue during 2018, marking more good news for Leicester investors.
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Are you looking to buy or sell property in Leicester? Why not get in touch with the expert property team at Keywest? Call us today at our office at Hinckley Road 01162 544 555, or Queens Road 01162 544 543.