Landlords charge high rent while market unstable
by Morag Lyall
Landlords are able to get good return on their property investment by charging high levels of rent while first-time buyers struggle to secure a mortgage.
According to the Royal Institution of Chartered Surveyors, a lack of supply of housing is causing rent increases
, signalling a revival in the lettings market.
Rental expectations are expected to rise to 36 per cent, the survey showed.
Tom Entwistle, director of LandlordZONE.co.uk, commented: "With mortgages still out of reach of the average potential first-time buyer, and uncertainty on the jobs front, it's not surprising that rental demand remains strong in most areas."
He noted that landlords looking to expand their portfolio could be lucky as many "reluctant landlords" have returned their properties to the sales market.
However, he advised people with buy-to-let mortgages to be careful as interest rates could rise.
"The outlook is bright for rental property, but in the short-run there are many uncertainties in the market," he added.
Research from the National Landlords Association has revealed that landlord optimism is at its highest since 2007 but remains fragile.
- Landlord and Tenancy News from Lawpack: Solicitor-approved Rent Increase Notice (Section 13) with expert guidance on how to complete the legal form
Published on: May 28, 2010
Did you like this article? Share it!