10/01/2011 - 41% landlords 'plan rent increase'
More than two out of five private sector landlords are planning to increase their rents over the next 12 months, according to a new study.
Buy-to-let mortgage specialist Paragon Group said 41% of landlords expect to charge their tenants more following rising demand for rental accommodation, while 55% intend to keep rents at existing levels.
Only 4% of buy-to-let investors plan to reduce their rents over the next one-year period.
A third of those planning rental hikes expect to increase it by around 4%, while one in 10 plan a rise between 4% and 8%.
The rental market is seeing increasing demand as prospective homebuyers continue to find it difficult to raise a mortgage. The gap in supply and demand pushed rental charges to record levels during the second half of 2010.
The study found that 45% of landlords expect demand from tenants to rise further. But a similar proportion (44%) believe the demand will eventually stabilise.
Copyright © Press Association 2011
Related links
|
