British landlords plan to increase rents -Survey
The majority of private sector landlords in the United Kingdom are planning to increase their rents in the next 12 months, according to a new study.
Overall 90 per cent are planning a rent rise, according to the survey by The Online Letting Agents. Some 51 per cent plan to raise their rent by three per cent, 33 per cent plan by five per cent and six per cent by 10 per cent.
During the next 12 months, over a third of landlords predict that property prices will rise by between six per cent and 10 per cent in their area, whilst the majority, 65 per cent, are more cautious, predicting price rises of up to five per cent
Director of the Online Letting Agents, Eleanor Carroll, said while the latest buy to let index from LSL Property Services showed that the average rent had risen by only £5 in the last 12 months, from £736 to £741, this did not reflect the regional variations on rent prices.
She said, “There is huge demand for rental property in the London and the South East and this is pushing up prices.
“For example, in parts of Essex, rents have risen by over 30 per cent year on year. With potential rate rises on the horizon and a surge in demand for rental property, it is understandable that the majority of landlords are going to continue increasing rent prices.
“Our new research shows that confidence among landlords is running high, with a third saying they will boost their buy to let portfolios in 2014, in the wake of escalating property prices and a host of attractive buy to let mortgages. Rapidly rising house prices have seen the typical buy to le let investor reap a huge 10.3 per cent total return over the past year, adding up to almost £17,000 on average.”
Over the last 12 months the firm has seen a 60 per cent increase in landlords signing up to its lettings service. Carroll said that this is a clear reflection of the growing buy to let market.
Source: Punch Newspaper
Overall 90 per cent are planning a rent rise, according to the survey by The Online Letting Agents. Some 51 per cent plan to raise their rent by three per cent, 33 per cent plan by five per cent and six per cent by 10 per cent.
According to Propertywire.com, the research also reveals that the majority of landlords are very optimistic about property prices, believing that they will continue to rise this year.
During the next 12 months, over a third of landlords predict that property prices will rise by between six per cent and 10 per cent in their area, whilst the majority, 65 per cent, are more cautious, predicting price rises of up to five per cent
Director of the Online Letting Agents, Eleanor Carroll, said while the latest buy to let index from LSL Property Services showed that the average rent had risen by only £5 in the last 12 months, from £736 to £741, this did not reflect the regional variations on rent prices.
She said, “There is huge demand for rental property in the London and the South East and this is pushing up prices.
“For example, in parts of Essex, rents have risen by over 30 per cent year on year. With potential rate rises on the horizon and a surge in demand for rental property, it is understandable that the majority of landlords are going to continue increasing rent prices.
“Our new research shows that confidence among landlords is running high, with a third saying they will boost their buy to let portfolios in 2014, in the wake of escalating property prices and a host of attractive buy to let mortgages. Rapidly rising house prices have seen the typical buy to le let investor reap a huge 10.3 per cent total return over the past year, adding up to almost £17,000 on average.”
Over the last 12 months the firm has seen a 60 per cent increase in landlords signing up to its lettings service. Carroll said that this is a clear reflection of the growing buy to let market.
Source: Punch Newspaper
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