Rents to 'keep going up' in most parts of the UK
Investors in list property could see rents continue to rise in many parts of the country this year, it has been predicted.
According to the National Federation of Property Professionals (NFOPP), while there will be some regional variations, the lack of supply and high tenant demand that helped increase rents throughout 2011 is likely to continue into 2012.
The organisation's chief executive Peter Bolton King said that many of the NFOPP's members had reported "a real shortage of property", increasing to a "desperate shortage" in some areas.
"In those areas it has caused rents to go up through supply and demand and because tenants are staying in properties longer and are not moving out," he commented.
"The demand is there and the supply is a problem, therefore in many areas I think that rents will keep going up - not everywhere though."
The expert explained that difficulties in getting a mortgage had left many people with "no option" but to turn to the private rented sector, meaning that the rental market will "continue to move forward" this year.
Furthermore, while demand may drop off in the longer term, Mr Bolton King sees the private rented sector continuing to enjoy rude health for some time to come.
"Generally the demand is there for rental property and that is not going to disappear," he said.
"All of the research that has been done shows that over the next ten-plus years the growth in the private rented sector is going to continue."
His comments follow a report released this week by the Young Group which revealed that 19.1 per cent of landlords added at least one new property to their portfolios last year spurred on by rising rents and capital growth.
It also found that 16.2 per cent of landlords are considering purchasing new assets over the coming 12 months.
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