Nearly a third of landlords have increased rents during the first quarter of the year, research from buy-to-let mortgage specialist Paragon has revealed.
The research shows that 32% of landlords have raised rents across their portfolios during the period.
One in ten landlords said that rental income across their portfolio rose by up to 2% during the period, with a further 10% stating that it rose by between 2% and 4%. However, nearly 5% of respondents said that rental income had risen by more than 8%.
Nigel Terrington, Paragon Group chief executive, said: “Supply and demand dictates rental pricing, and landlords are experiencing significant tenant demand for their properties at present.
“Obviously landlords do not want to make rented accommodation unaffordable, but a considerable proportion of them have been able to make small increases to their overall rental income during the first quarter.
“Government figures show that nearly 300,000 extra households moved into privately rented accommodation in England alone last year and that is placing increasing strain on stock in the sector.
“It is encouraging that buy-to-let lending increased by 22% during 2010, but more needs to be done to ensure that the private rented sector can expand sufficiently to meet tenant demand.”
Article by LAT
There is a direct link between the increase of rental values and the increase in rent. While rents are being raised in line with tenant-demand, landlords would be wise to keep rents achievable, securing a flow of rent and keeping arrears and problems at bay.