Landlords enjoying higher rental income
Landlords with UK buy-to-let properties are enjoying higher rental incomes, according to a new survey by Paragon Mortgages.
The buy-to-let lending specialist found that almost a third of landlords increased rents across their portfolios during the first quarter of 2011.
One in ten of those questioned said their rental income had risen by two per cent during the three-month period.
A further ten per cent enjoyed an increase of up to four per cent, while five per cent of landlords saw a rental income rise of more than eight per cent.
Nigel Terrington, chief executive at Paragon Mortgages, said landlords are experiencing strong tenant demand at the moment, which is dictating rental pricing.
"Obviously landlords do not want to make rented accommodation unaffordable," he remarked.
"But a considerable proportion of them have been able to make small increases to their overall rental income during the first quarter."
Mr Terrington cited government figures showing that 300,000 additional households moved into the private rented sector in England last year, leading to increased competition for quality properties.
According to the English Housing Report from the Department for Communities and Local Government, there are now 3.4 million households renting homes in the country.
The publication of the Paragon Mortgages report comes as research from HSBC shows that only two in ten aspiring homeowners think they will be able to buy a property in the next five years.
Some 45 per cent of those questioned believe they will never be able to own their own home, because they cannot raise a deposit, have insufficient income to support a mortgage or are concerned about their job security.
With this in mind, demand for rental accommodation could continue to rise in the years ahead, creating new opportunities for landlords.
Social media