39% of landlords expect rents to rise

Landlord Expert
By Landlord Expert December 12, 2012 08:53

While just 1% of property investors anticipate they will reduce rents next year, 39% of the 1,223 landlords polled by LSL Property Services expect to increase rents in the coming 12 months with 10% anticipating rises greater than 5%.

Those expecting to raise rents anticipate they will do so by an average of 4.6% - an increase from the 4.5% annual rise landlords predicted last quarter. Currently, average rents are rising at an annual rate of 3.4% according to LSL’s latest Buy-to-let Index.

David Brown, commercial director of LSL Property Services, said: “Fierce tenant competition in 2012 enabled many landlords to raise their asking prices when letting their properties, preventing inflation from eating into their rental income – and this is likely to continue in the next 12 months.

“Pension savers have been hit particularly hard by the Autumn Statement and as rental incomes improve buy-to-let looks increasingly attractive as an alternative long-term investment.”

Growing tenant demand has been the key factor in recent rent rises. In the past six months 43% of landlords have seen tenant demand rise while just one in twenty have seen demand decrease. Investors expect this growth to continue.

Two thirds of landlords (65%) anticipate demand will increase further in the next twelve months while just 3% expect demand to shrink.

While just 1% of property investors anticipate they will reduce rents next year, 39% of the 1,223 landlords polled by LSL Property Services expect to increase rents in the coming 12 months with 10% anticipating rises greater than 5%.

Those expecting to raise rents anticipate they will do so by an average of 4.6% - an increase from the 4.5% annual rise landlords predicted last quarter. Currently, average rents are rising at an annual rate of 3.4% according to LSL’s latest Buy-to-let Index.

David Brown, commercial director of LSL Property Services, said: “Fierce tenant competition in 2012 enabled many landlords to raise their asking prices when letting their properties, preventing inflation from eating into their rental income – and this is likely to continue in the next 12 months.

“Pension savers have been hit particularly hard by the Autumn Statement and as rental incomes improve buy-to-let looks increasingly attractive as an alternative long-term investment.”

Growing tenant demand has been the key factor in recent rent rises. In the past six months 43% of landlords have seen tenant demand rise while just one in twenty have seen demand decrease. Investors expect this growth to continue.

Two thirds of landlords (65%) anticipate demand will increase further in the next twelve months while just 3% expect demand to shrink.

Landlord Expert
By Landlord Expert December 12, 2012 08:53

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