15% year-on-year increase for rental income

15% year-on-year increase for rental income

Leading London-based estate agent ludlowthompson has recently revealed data that shows a massive increase in rental income over the last 12 months. Analysing data from HMRC, ludlowthompson’s research has shown a 15% year-on-year increase for rental income – increasing from £16.2 billion in 2015-16, to £18.7 billion today.

Driven by strong demand, the data shows that total income has increased by 55% over the last 5 years, making nonsense of the naysayers who spout that buy-to-let is dead.

Commenting on the research, Stephen Ludlow, chairman at ludlowthompson, said: “Buy-to-let property is now a key part of individuals’ investment portfolios and retirement income.

 “Residential property not only offers investors a stable, regular monthly income, but also offers long-term capital growth. While house prices are not a one-way bet, property has historically been far less volatile than other asset classes, such as shares.

 “The fundamental supply-demand imbalance remains with the pool of potential tenants getting larger each year. This is still the case in London, despite Brexit jitters.

 “Some of the increase in rental income will also be from rental growth, which means that rents are largely growing with inflation. Additionally, wage inflation has been growing steadily already over the past few months, and, historically, rental increases track wage increases. Ultimately, these figures highlight the real term growth in returns – the fundamental point behind any sound investment.”

With numerous attractive buy-to-let mortgage deals available on the market, and the ongoing short supply of affordable housing, buy-to-let is still an attractive investment that offers strong returns.