Rents rise by 16.3pc in five years
Over the last five years rents have risen by around 3.0% a year, however once inflation is taken into account this stands at around 0.6% per year.
Adrian Gill, director of estate agents Reeds Rains and Your Move, said: “The nature and affordability of UK housing is transforming before our eyes.
“In the last five years the private rented sector has successfully absorbed an unprecedented influx of tenants, while rental prices have broadly tracked inflation.
“As ever, the devil is in the detail – but as this growth accelerates, even more investment will be necessary for the industry to keep up.
“So we need more Buy-to-let landlords to help solve the crisis in demand for homes to rent.”
Rents have increased by 2.8% in the last 12 months, although they fell by 0.6% from December 2014 to January 2015.
Landlords have seen returns of 11.7% annually to January, down from 11.8% in the 12 months to December.
Tenants are in better shape financially, as 6.8% of all rent was in arrears in January 2015, down from 11.1% in January 2010.
Gill added: “Just as years of joblessness dealt a devastating blow to tenant finances, the current rate at which people are being pipelined into employment is a tonic for levels of rent in arrears.
“In the future we will look back at these economic conditions and recognise that buy-to-let investors have ‘never had it so good’.
“It’s good news for tenants, it’s good news for landlords, and it’s good news for the economy.”