UK landlords continue to grow in confidence as the buy to let sector continues to go from strength to strength.
LSL property services - the UK's largest lettings agency network including Reeds Rains and Your Move under the same brand - have just released the findings of their latest landlord survey.
The survey found that almost half the landlords in the country (46%) think that now is a good time to expand their portfolios. Of these four-fifths (82%) cited attractive property prices, while 53% mentioned strong tenant demand.
Sixty-four per cent of landlords are expecting tenant demand to continue growing over the next 12 months.
In the past six months, 44% of landlords have seen a rise in tenant demand, while just 1% have seen a decrease in demand. Investors expect this growth to continue. Two thirds of landlords (64%) anticipate demand will increase further in the next twelve months.
And four in ten landlords are planning on increasing rents during the same period, with the average planned rent increase averaging 4.5%. Only 1 in a hundred landlords are expecting reduce rents.
The incredible strength of tenant demand continues to drive up rents. According to the recent LSL buy to let index, rents hit a record high of £725 in England & Wales in July.
David Newnes, director of LSL Property Services, comments: "House prices are still subdued in many parts of the country and tenant demand is still growing. This is presenting landlords with the opportunity to secure strong yields on properties, and boosting confidence in buy-to-let as a long-term investment."
"The majority of landlords expect tenant demand will increase in the future, and as long as lending to first-time buyers remains in the doldrums, and new house building remains subdued, we won't see demand for rental accommodation tail off. In these conditions, while affordability may increasingly come into play as landlords set rents, they are far more likely to continue to rise than tumble in the coming 12 months."
- Thursday 13 September 2012