Landlords predict lower rent rises

Landlords predict lower rent rises

Britain’s landlords expect rents to increase by less than the target rate of inflation over the coming year.

A survey carried out by the Your Move and Reeds Rains network of estate and lettings agents found that, on average, the buy-to-let sector thinks rents will rise by just 1.8% over the coming 12 months.

This is just under the Bank of England Consumer Price Index (CPI) inflation target of 2%.

At present, the survey found, rents are rising at a rate of 2.4% across the UK.

David Newnes, director of Your Move and Reeds Rains, said: “Demand for rented accommodation is climbing, and there’s little sign of this stopping.

“While Help to Buy and higher LTV lending are enabling first-time buyer activity, strong house price growth this year has lifted homeownership a few steps out of reach for many, and the private rented sector remains the safety net supporting those still saving for a deposit.

“This is in addition to the thousands of people who rely on renting to offer them flexibility and freedom in their working lives.”

However, he added, rising demand was now feeding through into a greater supply of property in the private rental sector.

“Secure house prices and spirited tenant demand are encouraging budding buy-to-let investors and existing landlords to add to the number of available homes to let. The benefits of more investment will be felt in tenants’ back pockets at the end of the month, as the strain of rent rises eases further.”