38% of landlords expect to see rent rates rise in 2013
13th Dec 2012
The cost of monthly rent for those living in UK property could be set to rise over the coming year as landlords continue to see demand soar and capitalise on the potentially high yields that they can gain from their buy-to-let houses.
According to the latest report released by LSL Property Services, 38 per cent of landlords operating in the private rental sector are expecting to increase what they charge their tenants throughout the course of 2013, following rises throughout 2012.
These previous increases have seen the latest data signalling record-high rental prices throughout the country, with an average monthly expenditure for those who live in this kind of home jumping to £744 per month in October.
Increases in price throughout 2013 are expected to sit at around an average of 4.6 per cent after they were raised by a mean level of 3.4 per cent in 2012 overall. However, some landlords said they will need to charge more to meet their costs, and ten per cent expect to find themselves bumping prices in an upward direction by a full five per cent or more.
In contrast to the rises, only one per cent of landlords said that they think they will be able to reduce what they are charging. The good news for tenants, however, is that there are still 61 per cent who will hope to keep their prices flat in 2013, always a bonus in the current difficult market.
Any rises, as ever, are likely to be driven by the continued increase in demand, and 65 per cent of landlords predict that there will be upward movement in the number of people seeking out new rental properties throughout the course of the coming year.
David Brown, commercial director of LSL Property Services, said: "Fierce tenant competition in 2012 enabled many landlords to raise their asking prices when letting their properties, preventing inflation from eating into their rental income – and this is likely to continue in the next 12 months.
"Pension savers have been hit particularly hard by the Autumn Statement and as rental incomes improve buy-to-let looks increasingly attractive as an alternative long-term investment."
Posted by Staff Writer: Frances McDonald
© Zoopla Property Group Limited