The article I am going to write on is about the relationship between the landlord and the outperforming property sector of the UK which is growing extensively to provide the best outcomes to the landlords during recent years.
The recent boom in real estate industry is still injecting its full strength to bolster the landlords' portfolio and still proving the extra ordinary rents to Buy to Let landlords.
Experts have found that if the current increase in rental income and the property value would rise per current ratio then landlords would taste about 13% of rental income in the next twelve months and the raise in property value might be a separate issue to potent their portfolio.
They also figure it out from the recent stats that properties from England and Wales are experiencing the all time high rents up to 743 a month which indicates that the current increase in rental income is 0.7% high from the rental income in July and is up to 1.3% high than that of the rental income in August last year.
More importantly the experts from the different estate consultancy firms have diverse opinions about the current era of price boom. Some are more aggressive for the current per cent age of the increase in rental incomes and predict that if the current price rental income retains the increase per present ratio, the investors from the buy to let sector would gain 13.1 per cent rental income over the next year which would be as gigantic as 22,065 per property.
As the legendary artists have said about London as quoted below
"The man who can dominate a London dinner-table can dominate the world. - Oscar Wilde"
"When a man is tired of London, he is tired of life; for there is in London all that life can afford.
- Samuel Johnson"
So London is the hub of all the financial activities and hence playing a leading role in real estate market as well and leads the rise in property prices as well as the rents. Londoners are experiencing the mind blowing rise in rents and property values as third time as compare to the rest of the England and Wales over the last year.
The data shows that the average rent has risen by 4.8% higher than that of the last year to 1,126 in London which clearly indicates that the property prices are rising in London by 10% on yearly basis which bespeak the real demands of property in the capital of England.
None the less London, Wales is also following the footsteps of London and has become the second biggest region by increase in house rents by 2.3 per cent to 561 but the south east region is experiencing the maximum effect where the monthly rents are uplifted to 762 with increase of 2 per cent rise on monthly basis. Somehow there are certain regions that undergo the opposite trend and experience a drop in rents by 0.8 per cent to average 523.
All the above mentioned stats are observed after the announcement of cheap credit schemes announced by the government to help the investors to uplift their incomes. Although the government has announced Help to buy Scheme which helps the first time buyers to apply for housing with low deposits but the weak income growth and the lack of housing supply is preventing the low income borrowers to get benefit from such scheme, hence the rental sector of the real estate industry is continuing experiencing the strong demands.
On the other hand the house builders are also participating by their reviews that the current increase in rising property values is due to the lack of housing availability and in the new houses being building. They also added that there may be some concerns that may weaken the ability to build new homes and one is the surge in prices of bricks by 10 per cent and the 20 per cent rise in salaries of the bricklayers that has build a hole in brick demand and supply.
The recent boom in real estate industry is still injecting its full strength to bolster the landlords' portfolio and still proving the extra ordinary rents to Buy to Let landlords.
Experts have found that if the current increase in rental income and the property value would rise per current ratio then landlords would taste about 13% of rental income in the next twelve months and the raise in property value might be a separate issue to potent their portfolio.
They also figure it out from the recent stats that properties from England and Wales are experiencing the all time high rents up to 743 a month which indicates that the current increase in rental income is 0.7% high from the rental income in July and is up to 1.3% high than that of the rental income in August last year.
More importantly the experts from the different estate consultancy firms have diverse opinions about the current era of price boom. Some are more aggressive for the current per cent age of the increase in rental incomes and predict that if the current price rental income retains the increase per present ratio, the investors from the buy to let sector would gain 13.1 per cent rental income over the next year which would be as gigantic as 22,065 per property.
As the legendary artists have said about London as quoted below
"The man who can dominate a London dinner-table can dominate the world. - Oscar Wilde"
"When a man is tired of London, he is tired of life; for there is in London all that life can afford.
- Samuel Johnson"
So London is the hub of all the financial activities and hence playing a leading role in real estate market as well and leads the rise in property prices as well as the rents. Londoners are experiencing the mind blowing rise in rents and property values as third time as compare to the rest of the England and Wales over the last year.
The data shows that the average rent has risen by 4.8% higher than that of the last year to 1,126 in London which clearly indicates that the property prices are rising in London by 10% on yearly basis which bespeak the real demands of property in the capital of England.
None the less London, Wales is also following the footsteps of London and has become the second biggest region by increase in house rents by 2.3 per cent to 561 but the south east region is experiencing the maximum effect where the monthly rents are uplifted to 762 with increase of 2 per cent rise on monthly basis. Somehow there are certain regions that undergo the opposite trend and experience a drop in rents by 0.8 per cent to average 523.
All the above mentioned stats are observed after the announcement of cheap credit schemes announced by the government to help the investors to uplift their incomes. Although the government has announced Help to buy Scheme which helps the first time buyers to apply for housing with low deposits but the weak income growth and the lack of housing supply is preventing the low income borrowers to get benefit from such scheme, hence the rental sector of the real estate industry is continuing experiencing the strong demands.
On the other hand the house builders are also participating by their reviews that the current increase in rising property values is due to the lack of housing availability and in the new houses being building. They also added that there may be some concerns that may weaken the ability to build new homes and one is the surge in prices of bricks by 10 per cent and the 20 per cent rise in salaries of the bricklayers that has build a hole in brick demand and supply.
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