Buy to let industry could see rising rents

16 March 2010

Written by Steve Olejnik

Landlords with buy to let mortgages may be pleased to hear that rent expectations are on the increase.

According to the residential lettings survey from the Royal Institution of Chartered Surveyors (Rics), which looked at rentals between November last year and January 2010, new instructions have dropped.

For the second consecutive quarter there have been fewer properties coming on to the rental market.

Buy to let landlords have experienced a "downward trend" in rents since autumn 2008, but the latest results could signal a change in this tendency.

Spokesperson for Rics Jeremy Leaf said: "If demand remains strong … then rents should continue to rise as would be tenants compete for fewer properties."

"Accidental landlords" are also returning to the buy to let market, he added.

The latest housing market survey from Rics noted that supply was beginning to outstrip demand in February, which was the first time in two years this change has been seen.

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