Buy to let landlords 'will see increased rents'

20 July 2010

Written by Michael Aglony

Buy to let landlords will see rents rise as tenant demand increases, according to one expert.

Mark Garner, managing director at LettingZone, commented that the higher number of tenants in the market would "definitely" mean portfolio investors could put their rates up, as demand outpaces supply.

Indeed, a study by Countrywide recently revealed that 18,000 extra people leased accommodation in June - a 22 per cent month-on-month increase - while 16 per cent more people registered to live in rental housing in the second quarter of 2010.

However, many in the industry may be reluctant to increase the amount of rent they ask for to ensure the current occupiers of their assets are not discouraged from continuing their contract.

"As long as the tenant is paying the rent and looking after the property, most landlords would be happy to keep that tenant there rather than risk losing them by putting rents up," Mr Garner explained.

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