26 May

Rise in rents attracting investors

Rise in rents attracting investors

UK rents have increased by 4.7 per cent over the last year and this could be boosting investment opportunities.

A study by Countrywide Residential Lettings shows the rise in rental incomes could be encouraging more people to consider becoming buy-to-let investors.

According to the report, the number of properties purchased in the UK with a tenant already in situ has reached its highest level since 2005.

In 2014, 11 per cent of all rental properties were purchased with a sitting tenant as people consider property a good investment and appreciate the value of long-term tenants.

Data reveals that tenants in properties sold as occupied have lived at the address for more than the average tenant.  Overall, 25 per cent of such tenants signed contracts lasting at least two years compared to five per cent of tenants overall.

David Fell, research analyst at Countrywide, explained the number of landlords selling properties to other landlords has increased significantly, with investors keen to secure investments that have a reliable and quality tenant already in place.

"Buying a home with a sitting tenant makes sense for a lot of landlords. Having a good tenant already in place can be attractive to the purchasing landlord and means there is rent coming in from day one. It also allows the landlord to avoid the costs associated with finding a tenant straight after buying," explained Mr Fell.
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