Healthier returns for Landlords

According to the latest Buy-to-Let Index from Your Move and Reeds Rains, taking into account both rental income and capital growth, the average landlord in England and Wales has seen total returns of 12.0% over the twelve months to January, this figure is up from 11.25% in the twelve months to December.

Reed Rains and Your Move director Adrian Gill reportedly said:  “Landlords’ balance sheets are looking healthier than at any point since 2014, and property investors are looking at an excellent rate of return from their portfolios.

“With house prices rising rapidly into the New Year, this acceleration will be a welcome addition to the wealth of landlords on paper, while solid rental yields are underpinning total returns pushing well into the double digits.

“Canny tenants are taking advantage of the slightly cooler winter rental market, and securing tenancies with rents a little lower than in the peak autumn market last year. There are good deals to be had. But underneath this seasonality, rents are beginning to accelerate once again on an annual basis.

“Real wages continue to rise meaning many tenants are able to pay a little more rent if necessary. In a competitive market that is a recipe for rent rises.”

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

buying at auction uk
Breaking News

Most active property markets in 2025 revealed

Scotland and Yorkshire home to UK’s most active property markets in 2025 The latest research from The Property DriveBuy reveals that Scotland and Yorkshire have been home to the UK’s most active housing markets in 2025, with Birmingham, Somerset, Cornwall and Buckinghamshire also ranking within the top 10. The Property DriveBuy has analysed the latest…
Read More
Estate Agent Talk

The Renters’ Rights Act: turning change into advantage

The private rental sector is entering a period of unprecedented change. For estate agents, the Renters’ Rights Act 2025 taking effect from May is not just another piece of legislation – it will reshape how you advise landlords, manage tenancies and maintain compliance. Mustafa Sidki of the real estate team at Thackray Williams explains how…
Read More
Christmas Decorations - Good or Bad for Selling
Breaking News

Lower mortgage rates help Santa deliver 600 more toys this Christmas

With Christmas fast approaching, falling mortgage rates could be doing more than easing household finances this festive season. In fact, if Santa himself were to secure a mortgage on the North Pole today, he would be saving more than £2,000 a year on his monthly mortgage repayments compared to taking out the same mortgage at…
Read More
Christmas Decorations - Good or Bad for Selling
Breaking News

Has your property paid for Christmas this year?

The latest research from Yopa has revealed that, despite a quieter year for the UK property market, the vast majority of homeowners will have effectively seen their property pay for Christmas, based on the increase in the average house price versus the average festive spend. Yopa analysed house price growth since the start of the…
Read More
Breaking News

Applicant budgets remain stable and rental prices in line with historic norms

Ratio of new renters per instruction rose by 5.1% from 8.9 to 9.4 applications per instruction. Average rental prices declined by 4% in November 2025, remaining closely aligned with November levels observed over the past four years. Year-to-date, average rental prices are 2% higher in 2025 compared to 2024.   New data from Foxtons, London’s…
Read More
Estate Agent Talk

The Impact of Increasing Lease Conversions on Estate Agents in 2026

2026 is shaping up to be a watershed year for the property market. Economic pressures, shifting demand and regulatory changes are converging to create a surge in lease conversion applications. For estate agents, this “perfect storm” will reshape the portfolios they manage and redefine their role in advising landlords. Mustafa Sidki of the construction team…
Read More