Figures released today from Land Registry’sApril House Price Index show an annual price increase of 6.7%.
The average house price in England & Wales is now £172,069 compared with the peak of £181,572 in November 2007 and up 1.5% since a month ago.
The figures support claims that a combination of low interest rates, renewed economic confidence and Help to Buy schemes are forcing house prices up across the country.
For buy-to let investors, these rising prices represent a welcome uplift in capital values. But, Platinum Property Partners (PPP) warns that effectively managing your rental income is just as important, if not more so in a particularly fluctuating market.
Tony Bennett, Managing Director of PPP, said: “The housing market is clearly moving from strength to strength. However the flipside to accelerating house prices is the property ladder inching further away from the grasp of aspiring buyers.
“The government’s flagship Help to Buy scheme has galvanised some new buyers, and for these the support has been vital. But with less than 7,500 homes sold under the scheme’s second phase, it is just a fraction of the total across the UK.
“As more and more are locked out of the market, the demand in the rented sector will only intensify. Not only will it be a case of landlords widening the pool of rental homes, but also ensuring these are both affordable and to a high standard.
“While capital growth is a positive for landlords, we urge them to pay attention to the income potential of their properties, especially when the market remains unsteady. Our latest research found that only a third of landlords invest in property with the aim of generating an income now, but the two must go hand in hand to maximise the return from any buy-to-let investment.”
For more information on how Platinum Property Partners can help buy-to-let investors maximise rental income, visit our page.
