Two in five landlords use properties as 'pension pots'

Two in five landlords use properties as 'pension pots'

Almost two in five landlords (37 per cent) regard their properties as their “pension pot” as UK rents hit the second highest peak ever recorded, according to national estate agent Your Move. 

The average rent in England and Wales reached £900 in October while the average rent per-calendar-month in London reached £1,290 per calendar month. 

However, this figure was marginally down as the housing market shows signs of contracting as in September the average monthly total nationally was £907. 

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Across England and Wales rents have increased by 12 per cent in the year to October 2016.

Wales was the location with the fastest growth in the last year as rents rose by 8 per cent. 

A typical property was let for £547 in October 2015, a figure that has now risen to £591 within a year.

Other areas to boast strong growth include the East Midlands and the East of England. Both of these regions saw average rents increase by 6 per cent in the last year.

In the East Midlands prices rose from £594 to £628 while rental properties in the East of England now let for an average £856, up from £805 a year ago.

At the other end of the scale, the North East of England was the only place to see rents fall compared to last year. Properties in this area were one per cent lower this month than in October 2015. 

The region also remains the cheapest place to rent a property in England, with the average tenant paying £541 per calendar month.

The only other region surveyed which showed no growth in the last 12 months was the South West. 

In the South West, rents were down 2.5 per cent compared to September 2016, the biggest fall in this survey. 

Adrian Gill, director at Your Move, said: “After a turbulent year for the economy it is no surprise the rental market has paused for breath this month. Despite economic uncertainty and the European Union referendum result, the lettings market has powered through the year so far.

"The underlying market remains strong and we expect growth to resume in future months.Landlords continue to see impressive yields and the UK property market continues to be a safe and secure place to invest.”

Patrick Connolly, certified financial planner at Chase de Vere, said: "Property investors can see that they own a real tangible asset rather than a number on a pension valuation and through rental payments can benefit from a consistent and regular income.

"However, for most people pensions are a preferable option as they provide more investment choices, better diversification, more tax efficiency, lower charges and generally less hassle."