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Research shows rental property investment offering inflation busting returns

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As the cost of living in rented property continues to rise, new research* from landlord insurance specialists Cover4LetProperty has revealed that over a third of all renters (34%) have seen up to a 5% increase in the cost of their rent – more than the current rate of inflation which stood at an average 2.8% last year** .

The study also revealed that:

  • just under a fifth of all renters (18%) saw a 6-10% increase in the amount of rent they paid during the last 2 year period;
  • 2% saw their rent increase by up to a staggering 20% during the same period;
  • over a quarter of the adult population (28%) are living with family or friends – the same amount as people who live in their own or mortgaged property;
  • 16% of people who live with family or friends do not pay rent;
  • 31% of these are in the 40-49 age bracket;
  • 34% have always lived at home, with 4% recently returning home due to divorce or to care for a sick parent.

Richard Burgess, Director at Cover4LetProperty, commented: “As an investment, this research shows that rental property continues to give a good return as rents are increasing. It also shows that rental demand is rising as more people look to rent rather than buy, as it is a lower cost option.”

"Conversely for renters, rental increases are outperforming inflation so the cost of living is rising."

Ends

*Independent study carried out for Cover4LetProperty May 2013 by Usurv

** http://www.rateinflation.com/inflation-rate/uk-historical-inflation-rate?start-year=2012&end-year=2013

Contact:

Richard Burgess, MCIM, Director at Cover4LetProperty, telephone: 0845 863 9558, or email: richardb@alanblunden.co.uk

About Cover4LetProperty:

With roots going back to 1946, our clients can benefit from 66 years’ of experience in the landlord insurance marketplace. We are award-winning independent intermediaries and act on behalf of our clients in arranging their buy to let and unoccupied property insurances. Our service includes advising clients on their insurance needs, arranging insurance cover with insurers to meet those requirements and help with any ongoing changes that have to be made to their landlords insurance policies.

In 2011 we were proud to beat off some stiff competition for the award for Best Landlord Insurer in the prestigious The Money Awards.

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letting landlords Richard Burgess tenants property investment cover4letproperty wwwcover4letpropertycouk

Quick facts

• just under a fifth of all renters (18%) saw a 6-10% increase in the amount of rent they paid during the last 2 year period; • 2% saw their rent increase by up to a staggering 20% during the same period; • over a quarter of the adult population (28%) are living with family or friends – the same amount as people who live in their own or mortgaged property; • 16% of people who live with family or friends do not pay rent; • 31% of these are in the 40-49 age bracket; • 34% have always lived at home, with 4% recently returning home due to divorce or to care for a sick parent.
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Quotes

As an investment, this research shows that rental property continues to give a good return as rents are increasing. It also shows that rental demand is rising as more people look to rent rather than buy, as it is a lower cost option
Richard Burgess, Director at Cover4LetProperty