Buy to let landlords 'can raise rent on lower supply'

23 August 2010

Written by Steve Olejnik

Buy to let landlords are in a good position to raise rent, one expert has said, as the number of houses on the market has fallen.

According to director and founder of LettingZone Mark Garner, there are around 20 to 50 per cent fewer properties for lease now compared with last year.

Rented residential houses are in short supply in all sectors, he went on, despite this being the time of year that many tenants leave to go abroad.

This and the high cost of buying homes means portfolio investors will be able to increase rent by around three to five per cent, he predicted.

"Good properties are letting very quickly ... [and] most existing tenants are staying put to save money and wait for house prices to reduce further," he explained.

Indeed, the value of abodes is increasing, with the Department of Communities and Local Government reporting a 9.9 per cent rise in the worth of homes in June, compared with the same period in 2009.

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