London Landlords; Annual Returns of 5 Times National Average

Landlords with property to rent in London are set to benefit financially as rents rise.

According to data from LSL Property Services, rents rose to a record high in May, having increased by 0.5 per cent to an average of £696.

London landlords are particularly well-placed to benefit as they could well see total annual returns of nearly five times the national average as demand for London property to rent steadily increases.

John Heron, managing director at buy to let lending specialist Paragon Mortgages, commented: "The rising rent costs reported give an indication of the continued lack of properties in the buy to let sector due to the constrained finances of professional landlords.

"There are a number of products available for smaller scale landlords, with only one or two properties, but for the professional landlord with a large portfolio there is limited finance available," he noted.

Mr Heron called for more UK mortgage lending options to be made available to professional landlords, as this will be needed to drive growth in the sector.

London Property to Rent