There’s more good news for property investors and buy-to-let landlords as average rental values rise by 10.5% in the three months to August, according to the latest HomeLet Rental index.

Headlines from the report include:

•     When London is excluded, the average UK rental value in the 3 months to August 2015 was £766pcm - 6.6% higher than the same period last year (£718pcm)
•     The annual growth in average rental values for the three months to August (10.5%) was higher than 2014 (8.1%) and 2013 (4.9%)
•     In the three months to August 2015, average tenant incomes were 3% higher than the same period last year
•     All regions, apart from North West, saw an increase in average rental values in the three months to August, when compared to last year
•     In the three months to August 2015, the average rental value across the South East was £962

Michael Cook, Assistant Managing Director of Romans Lettings, comments on the index: “It’s very positive for landlords at the moment as rental values continue to rise signifying continued demand from tenants. House prices are also increasing creating valuable capital growth and attracting more interest in property as a viable investment option.

Additionally, interest rates have remained at record lows encouraging more landlords to grow their property portfolios, often remortgaging existing properties in order to release the capital to invest.

“Interest rates can have a big impact on your mortgage repayments” adds Michael, “and with rates remaining at record lows of 0.5% since March 2009, is it really worth the risk of waiting to see what happens to interest rates if you’re thinking of investing in property?”

Local investment hotspots

In every town Romans operates in the average rental value is higher than the UK average of £766pcm, highlighting the strength of the local rental market.

“We’ve seen a recent surge in interest from property investors in Basingstoke and Reading particularly. This is mainly down to local town regeneration, improved transport links, and on-going demand from tenants” adds Michael.