UK Buy-to-let Landlords expect rents to rise in 2013

Landlord Expert
By Landlord Expert December 17, 2012 10:20

Results from an LSL Property Services study show that just over a third of landlord insurance holders expect to increase rents in 2013.

In a poll of 1,223 landlords, 39 per cent expect to raise rents by an average of 4.6 per cent. Ten per cent of those polled are expecting a rise of over five per cent. Currently, the average annual rate of rental rise is 3.4 per cent, according to LSL. Only one per cent of landlords are anticipating that they will reduce rents.

Commercial director at LSL David Brown believes it is the fierce competition from tenants that has contributed to landlords raising their asking prices. The prevention of inflation from eating into rental income could also be a factor.

Almost half of the landlords surveyed have noticed an increase in rental demand in the past six months, whilst only one in 20 have seen demand decrease.

This demand is predicted to keep on growing in the next 12 months, with 65 per cent believing this will be the case.

 “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,” said Mr Brown.

It may be the perfect time for landlord insurance holders to invest in more properties, with 84 per cent of landlords citing current property prices as a strong draw. Over half of the landlords polled (52 per cent) are also enticed to make further investments due to strong tenant demand.

This strong demand saw only 15 per cent of landlords experience an increase in the time that their properties were vacant.

However, despite the recent modest improvements in the mortgage market, only one in 11 landlords believe that the availability of cheap finance is a reason that now is the best time to invest in property.

The Autumn Statement issued by the Chancellor at the start of December may have an impact on the amount of landlords. Mr Brown said:

“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.”

One of the biggest benefits with choosing an insurance expert such as Discount Insurance is that landlords can request specific cover to ensure that whatever use they have for their buy to let property, they can have the right landlord insurance cover to fully protect their investment.Their Buy to Let Insurance is a comprehensive insurance product offered at extremely competitive rates for Landlords Buildings and Contents. Discount Insurance  can provide cover for the following types of let: people in full or part-time employment or self-employed, students in full or part time education, DSS tenants (in receipt of benefits) including single people, couples and families. They can also offer cover for asylum seekers and even unoccupied properties. Discount Insurance is offering such competitive premiums and a great level of cover. For more info visit: www.discountinsurance.co.uk or call 0208 847 8000 to quote.

Landlord Expert
By Landlord Expert December 17, 2012 10:20

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