London Rental Yields Rise

Landlords interested in rental yields and returns in London may be happy to hear that average rental prices are sure to increase in the short-term and could well continue rising over the next couple of years.

This is according to Mark Garner, director and founder of LettingZone, who pointed out that the demand for affordable housing in London will allow landlords to set rental costs as high as they like.

"Rents are definitely on the way up purely because of the lack of supply. There are no new properties coming on the market, so supply and demand [means] rent prices will go up. They won't race away, but they will go up a few per cent definitely," he asserted.

Changes to the housing allowance will also see more people wanting to go private than stay where they are, which means rents "are going to be pushed up for the next two years", Mr Garner added.

His comments follow research from Zoopla which found buying a property is now more cost effective than renting in four-fifths of British towns and cities.

London Property to Rent