Four in 10 landlords “expect” higher rents
Of those expecting to raise rents 56% said that it is justified by the cost of inflation, which they need their tenants to cover.
Some 57% of landlords meanwhile expect to charge the same amount in 2014.
David Newnes, director of LSL Property Services, said: “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.”
The average anticipated rent rise is 3.7%, 0.9% less than the same time last year.
Actual rents meanwhile are increasing by 1.5% annually, according to LSL’s Buy-to-Let Index.
Newnes added: “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.”
LSL Property Services own Reeds Rains and Your Move, and cover operations in surveying, estate agency, corporate services and financial services.
David Newnes, director of LSL Property added: “Rising rents are delivering strong yields to investors, making a powerful case for the rental market for those in search of a beneficial, long-term investment.
“However buy-to-let investment is not a license to print money, and it requires the same level of research and planning as any other business investment. The success of the investment depends on the property remaining occupied to deliver ongoing rental income.”