Insurance News
London rent prices suffer while other regions see steady rise
08th June 2012
While London is traditionally considered the most active and profitable property market in the country, it seems that the capital's position may now be challenged by other regions.
That's according to the latest figures released by Haart estate agents, which revealed that average residential rents in London fell by 4.3 per cent last month, while those outside of the city rose by 0.7 per cent.
And as landlords look to take advantage of the most profitable areas, increasing numbers may decide to search for properties away from the capital as they aim to expand their holdings.
Yet despite London's recent struggle, investors everywhere may be buoyed by the news that longer-term tenancies were found to be becoming more popular, meaning that potentially expensive void periods are being cut down as a result.
"We are seeing long-term tenancies becoming commonplace," said Andrew Benn, managing director of Haart Residential Lettings.
"So whilst landlords may not achieve the same rents as [they] previously enjoyed, they are benefitting from the security of tenure and with it minimising the potential for expensive void periods."
Letting property is a business venture - and just like any other entrepreneurial project, there is a wide array of factors for landlords to take into account as they go about building, tweaking and maintaining their portfolios
While the likes of block insurance policies, lettings agents fees and buy-to-let mortgage payment rates all have to be considered when looking at the financial side of investing in properties, there's also one other aspect upon which much of a landlord's success can hinge; profitability.
Indeed, the rental prices that are set for any holdings determine the rate of return that the owner will enjoy, so finding areas where demand is high and yields are strong is often touted as the best way to maximise profits.
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