Residential rental returns continued to grow last month according to the latest buy to let index from LSL Property Services Ltd.

The average rent in England and Wales rose by 0.1 per cent to an average of £712 per month, taking the total annual rent inflation from 4 per cent in December to 4.3 per cent.

Putting that into simpler terms, it means that on average a rental property is providing its landlord with around £30 per month more than it was a year ago.

The largest annual increases have unsurprisingly come in London. Buy to let properties in the nation’s capital city now yield a 6.3 per cent better yield than they did at the beginning of 2011.
David Brown, commercial director of LSL Property Services, said: “The rental market burst back into life unseasonably early in January, with tenants on the move trying to take advantage of what is usually a quieter period for the rental market.”

And the supplier of rental stock is set to increase this year as recent indications suggest that a large number of landlords are currently looking at expanding their portfolios.