Nearly half of landlords set to raise rents
Published by Max Salsbury for 24dash.com in Housing
Westminster negotiates lower private rents on former council flats
Four in ten landlords will raise their rents in the next year, according to a survey by LSL Property Services.
One third say they will raise rents above 1% in the next 12 months, with an average estimate of 3.7%. Currently, average rents are rising at an annual rate of 1.5%, according to LSL’s latest buy-to-let index.
And 56% of those that intend to increase costs said they will do so to cover the cost of inflation.
David Newnes, LSL director, said: “Even with an increase in rental properties available, demand in the private rental sector continues to outstrip supply in many areas, especially in London. In the months ahead, this will enable landlords to push up their rental prices when letting their properties, putting a stop to inflation from eating into their rental income. This is underlined by the fact that covering the cost of inflation is the main reason cited by landlords expecting to increase rents.
“With demand rising, greater emphasis must be on the supply of homes. While the government plans outlined are a welcome move, this is only the start of the long-term solution.”