Rents have reached an all-time high, a study suggests, with landlords making a 13pc total return in a year
The cost of renting has risen to an all-time high, according to a buy-to-let index.
The figures were published by a major lettings network which said it was a peak month for tenants to look for new homes.
LSL Property Services, which owns chains Your Move and Reeds Rains, said rents rose 2.4pc in the 12 months to August across England and Wales, meaning they have edged £3 higher than a previous record set in October 2013.
The study also reflected how buy-to-let investing had been growing in the past year, with rents and capital growth combining to deliver a single year return of nearly 13pc.
LSL’s records go back to January 2008.
David Newnes, director of Your Move and Reeds Rains, said: “Autumn is when more people move to take up new opportunities, to build new careers and to start new chapters.”
Average rents in seven out of 10 regions of England and Wales were higher than a year ago.
A combination of rising rents and sharp increases in house prices has made buy-to-let highly profitable in recent years.
The LSL study suggested landlords had seen a gross average return of 12.7pc in the past year. This typically, was £8,233 in rent and £13,066 in capital gain, before taking tax, mortgage repayments and maintenance costs into account.
Landlords have also seen the cost of buy-to-let mortgages fall as well as choice of lenders flourish in the past year.
Telegraph reader Cathy Colston recently told this newspaper how she quit a senior role at Boots to turn her buy-to-let hobby into a full time job, saying she hadreplaced her salary within four years.
Mrs Colston owns nine properties across Bath, Cardiff and Bristol, where landlords have reaped some of the highest buy-to-let returns. In the past year, rents in the South West have increased by 3.5pc, outstripping the national average of 2.4pc.
Taken from an article by Kate Palmer of the Telegraph
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