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Buy to Let

London drives buy-to-let landlord increase

Seamus Hasson
Written By:
Seamus Hasson
Posted:
Updated:
07/01/2015

The cost of agreeing a new tenancy rose by 3.7% in the last year as the buy-to-let market benefited from slowing house prices.

The increase has been driven by London and the East of England where properties remain empty for less than 14 days a year on average.

Properties across Wales, the North East and the North West remain empty for an average of 18 days a year accounting for the additional time it takes to find a tenant.

According to Countrywide residential lettings, the cost of a newly agreed tenancy in the capital rose by 7.4% to stand at an average of £1,299pcm in October 2014.

The UK average increase for sitting tenants across the UK was 1.7%, well below the figure for agreeing a new tenancy. The difference between the two figures is largely underpinned by tenants with 12, 18 and 24 month fixed deals where the landlord has chosen not to pass on any increases.

Nick Dunning, group commercial director, Countrywide plc said: “While the level of demand means that the time taken to find a tenant is at a near record low, landlords should still factor in a short period when their property will be empty.

“While voids are often associated with the time taken to find a tenant, in stronger markets property can be re-let in advance of it becoming empty. Even in these strong markets, time to carry out repairs and facilitate a handover between tenants is a cost which needs to be factored in.”

Last month a report from Countrywide suggested that buy-to-let borrowers could require a 40% deposit under new rules in London and the South East.


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