Photo credit: Boyce Duprey
The report conducted by LSL Property Services plc found that one third of landlords expect they will raise rents above 1 per cent in the next 12 months. Currently, average rents are rising at an annual rate of 1.5 per cent, according to LSL’s latest Buy-to-Let Index.
Out of those that expect to increase rents, 56 per cent indicated they will do so to cover the cost of inflation. While conversely over half (57 per cent) expect to leave rents unchanged in 2014.
David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, comments: “Even with an increase in rental properties available, demand in the private rental sector continues to outstrip supply in many areas, especially in London. In the months ahead, this will enable landlords to push up their rental prices when letting their properties, putting a stop to inflation from eating into their rental income. This is underlined by the fact that covering the cost of inflation is the main reason cited by landlords expecting to increase rents.
“With demand rising, greater emphasis must be on the supply of homes. While the government plans outlined are a welcome …read more
Source: The Movechannel