However, there was a marked difference between the rates of return experienced throughout the country, with prime central London at 5.6%, the rest of the South East at 6.1% and the rest of the country at 7.0%
Although this shows a decline of half a per cent in average rental returns, from 6.8% to 6.3%, ARLA member letting agents reported a 15% rise in the number of new tenancies arranged. The average number of new tenancies by ARLA member agents rose from 19.2 to 22. Prime central London showed the biggest increase, rising on average from 12.8 new tenancies in the two months to April and up to 18.7 over July and August. This is a rise of 46%.
The new ARLA quarterly survey is based on responses from over 500 member agents. It is supported by the ARLA panel of mortgage lenders: Birmingham Midshires, GMAC Residential Funding, NatWest Mortgage Services, Paragon Mortgages and Standard Life Bank.
