Landlords 'predict rise in rents in 2013'
by Sarah Ashcroft
An increasing number of buy-to-let landlords are predicting an upturn in the monthly cost of renting in 2013, new research from LSL Property Services has revealed.
According to the company's latest Buy-to-Let Index, 39 proprietors expect to make rent increases
in the next 12 months for every investor that expects to lower them.
Analysts found that while just one per cent of landlords anticipate they will reduce rents in 2013, 39 per cent are preparing for price hikes - with ten per cent predicting rises higher than five per cent.
The average owner is likely to drive up annual fees by 4.6 per cent, representing an increase from the 4.5 per cent yearly rises predicted during the last quarter.
Ongoing demand for properties is thought to be among the main factors contributing to a rise in rent, with 43 per cent of proprietors noting an upturn in the number of people searching for homes in the past six months.
This is something that landlords predict will continue into the foreseeable future, while just three per cent expect demand to decline.
Indicating the buy-to-let market's ongoing stability, respondents noted that they think now could be a good time to purchase rental property - with attractive prices and strong demand seen as the two main reasons.
In addition, a good return on investment is another factor attracting prospective landlords to the market.
Researchers found some 49 per cent of landlords believe now is a good time to invest, which highlights a one per cent rise from those of the same opinion during the previous quarter.
Commenting on the findings, David Brown - commercial director of LSL Property Services - said: "With lending to first-time buyers without substantial deposits historically subdued and the number of UK households increasing, landlords expect demand for rental accommodation to swell further.
"Purchase prices are still down on their peak and as rents rise annually, there are some attractive yields on the cards for new investors that do their homework before buying."
- 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: December 11, 2012
Did you like this article? Share it!