News from Manor Lettings
4 January 2011: Landlords say rents to rise in 2011
This is on the back of strong levels of tenant demand, research from The Paragon Group has revealed.The buy-to-let mortgage specialist's data showed 55 per cent of landlords plan to keep rents at 2010 levels and four per cent landlords will reduce the rent they charge.
Nearly a third of landlords plan to increase rents by up to four per cent of the current value, with ten per cent aiming to increase the rent they charge tenants by between four and eight per cent.
Landlords' expectations for rental inflation are mirrored by their view of tenant demand over the next 12 months. Some 45 per cent of landlords believe tenant demand will continue to grow during the year, with 44 per cent forecasting that it will stabilise.
Nigel Terrington, chief executive at Paragon, claimed landlords are in a strong position. He said: "Tenant demand has risen faster than supply during 2010 and that is expected to continue well into 2011. ‘This is reflected in landlords‘ expectations of future levels of tenant demand and also the rent they are planning to charge for their properties.‘
‘There continues to be a lack of finance available in the UK mortgage market, meaning that many potential buyers are opting to rent instead.‘
‘Meanwhile, many of the factors that have driven tenant demand in recent years, such as positive net migration, high student numbers and people preferring to buy later in life, are continuing‘
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