Just 1% of property investors anticipate they will reduce rents in 2013 while 39% of the 1,223 individuals recently polled expect to increase their rents in the coming 12 months, with 10% anticipating rises greater than 5%.
Those landlords who expect to raise rents anticipate they will do so by an average of 4.6%, an increase from the 4.5% annual rise predicted in the last quarter. Currently, average rents are rising at an annual rate of 3.4%, according to a Buy-to-Let Index. 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.
Growing tenant demand has been the key factor in recent rent rises. In the past six months, 43% of landlords have seen tenant demand rise, while just one in twenty have seen demand decrease. Investors expect this growth to continue. Two thirds of landlords (65%) anticipate demand will increase further in the next twelve months, while just 3% expect demand to shrink.
With the underlying fundamentals behind long-term investment looking so strong it should come as no surprise that 49% of landlords believe that now is a good time to invest in property while in sharp contrast, less than 1% think now is a good time to reduce their portfolio size.
Rising tenant demand has been at the heart of the recovery of the buy-to-let market, and
will continue to be so. With lending to first-time buyers without substantial deposits historically subdued, and the number of UK households increasing, landlords expect demand for rental accommodation to swell further. Purchase prices are still down on their peak, and as rents rise annually, there are some attractive yields on the cards for new investors that do their homework before buying. As a result of strong tenant demand, just 15% of landlords saw the time their rental properties were vacant increase in the past year. 58% of respondents experienced voids
periods of less than two weeks, including 19% who saw no void periods at all.
By and large, investors do not expect the situation to deteriorate, with two thirds of investors predicting voids won’t grow next year.
If you are an existing landlord or potentially a first time landlord get in touch with Belvoir Sheffield today to take advantage of our vast expertise and experience to ensure you are getting the best advice
Contact us today on 08452 60 40 90. or email us at sheffield@belvoirlettings.com
Taken from: http://bit.ly/16Aj9q
