London landlords 'enjoy income of £38,000 a year'
by Sarah Ashcroft
Owning rental property in London can be an extremely profitable business, with the average landlord enjoying an income in excess of £38,000 a year.
New figures from LSL Property Services show the 12 months to January were an incredibly positive period for those renting out homes in the capital.
In addition to the money made from rental income, landlords in London are also benefiting from steep increases in the value of their properties.
David Brown, commercial director of LSL Property Services, explained that rents are increasing
steadily, albeit relatively slowly, as a result of the efforts of landlords who have been working hard to make sure plenty of tenancies are available.
He went on to note there is a "dire shortage" of housing in the UK, which provides a significant incentive for people with the ability to rent out homes to make it happen as soon as possible.
"Rents will not fall in real terms for a very long [time] while there remains such a severe mismatch between the building of new homes and the number of households looking for somewhere to live," Mr Brown explained.
Across the entire country, the average return for each landlord last year was £14,767, with London's figure of more than £38,000 in excess of five times the income recorded by those in the north-east, where the total stood at £7,271.
The organisation went on to predict that landlords could make an average return of around £22,256 in the next 12 months, as fewer vacancies and rising values combine to make the sector a great place to be for owners.
Over the course of the 12 months to January, rents in the UK are said to have risen by a typical rate of 1.4 per cent.
On average, landlords are asking for £742 a month from tenants in order to rent their own home.
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Published on: February 21, 2014
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