Private rents rising faster than house prices
For the first time in nearly two years private rents are rising faster than house prices. As rents become less affordable the proportion of people in arrears rose to 8.7% in June from 7.6% the previous month. In addition to landlords becoming more likely to experience missed rent payments, many analysts are predicting a rise in interest rates which will further impact buy-to-let income. The advice to new landlords and investors is to do their sums properly and to put aside 30-35% of one year’s gross annual rental income to cover items such as rent arrears, void periods, maintenance, repairs and refurbishment, along with ongoing rental costs.
Full story available from Property Reporter: http://www.propertyreporter.co.uk/landlords/arrears-soar-87-as-rents-outpace-house-prices.html