Rental incomes increase for third straight month
Investing in buy-to-let in London and elsewhere could be spurred by news that landlords have seen rental income increase for the third consecutive month.
A survey by buy-to-let mortgage specialist Paragon has found that 34 per cent of landlords saw the amount of income they made in rent increase during the third quarter of the year, compared to 29 per cent who said the same thing in the previous quarter.
Just four per cent of landlords said that rental incomes fell during the period.
Nigel Terrington, chief executive of Paragon, suggested that greater UK property investment could be needed to meet rising demand for private rented property driven by the difficulty would-be homebuyers are currently having in securing finance for a home.
This could be the case in London in particular, where house price rises are preventing many people getting a foot on the property ladder.
"Tenant demand has been growing for a number of years, but in recent months it has accelerated considerably," he said.
"With tenant demand only looking to increase further in the coming months, landlords are likely to continue to experience increases in their rental income, especially given that 49 per cent of landlords said they expect demand to further increase in the next 12 months.
"It is crucial then, with increases in demand, that investment continues to be made in the private rented sector, ensuring that it remains fit for purpose and continues to provide good quality and affordable housing to millions of tenants."
Just over ten per cent of landlords said their rental income had increased by between two per cent and four per cent during the quarter, while 13 per cent of buy-to-let owners said rents had increased above that level.
It follows a poll by Assetz which found that over three-quarters (76.8 per cent) of those who already own a buy-to-let property want to make further purchases over the coming year.
Social media