Nearly a third of all landlords increased rents in Q1 2011
Published ¤ 25/03/2011 12:20:46
Nearly a third of landlords have increased rents during the first quarter of the year, research from buy-to-let mortgage specialist Paragon Mortgages has revealed. Paragon research shows that 32% of landlords have raised rents across their portfolios during the period.
One in 10 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 the year, but more needs to be done to ensure that the private rented sector can expand to sufficiently meet tenant demand."
The Communities and Local Government's English Housing Report, published in February, shows that the number of households renting privately has risen by one million since 2005-06, from 2.4 million to 3.4 million in 2009-10. The PRS now accounts for 15.6% of all households in England, up from 14.2% in 2008-09 and 11.7% in 2005-06. This equates to nearly one in every six households.
Paul Skinner from PKS, mortgage and insurance broker in Odiham, Hampshire, said "These figures are concerning for tenants. However, for landlords this is great news. We have seen an increase in demand for buy-to-let mortgages in recent months, and with rents on the rise this is not surprising.
"On the other hand, recent research from The Mortgage Works showed that almost a half of landlords buy investment property to achieve long-term capital growth, not for income."
If you need independent advice regarding buy-to-let, or any other type of mortgage, contact PKS now. Click here to get in touch.
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