Rental Income On The Up – Good News For Buy-To-Let Borrowers

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The very lifeblood of the buy-to-let sector is rental income, so any news of a rental increase across the nation is good news for landlords in the UK.

According to statistics by FindaProperty.com, rents increased by 0.7% over March, marking two straight months of rises in rental prices. FindaProperty.com’s most recent rental price index stood at £820 per month, which is a £16 increase since the beginning of the calendar year.

And according to the Residential Landlords Association, there has never been a lower supply of rental property since October 2008, which is leading to the increase in rental asking prices. Simply there are more people looking to rent than there are places to rent and that's a good business opportunity for landlords.

This means it is a great time to invest in buy-to-let. One of the biggest battles for landlords is being able to guarantee rental income – without it the buy-to-let mortgage must be paid by the borrower and that can lead to a lot of financial problems. But if there is a good, steady stream of adequate rental income buy-to-let profits are not far behind.

Also, the RLA says that relatively high demand, coupled with a declining stock of properties may ensure further rises in rents until at least the end of the year.

Talk to a buy-to-let mortgage adviser about what sort of loan you could invest in during this boom period for buy-to-let profit. If done correctly, and if the property is right, buy-to-let investment could offer much better returns than most other financial investments.

SOURCE: RLA, Findaproperty.com, 29/03/10

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