Rents increase on buy to let housing

26 May 2010

Written by Gavin Elley.

Buy to let landlords are seeing an increase in the rent they can charge as tenant demand grows stronger amid a lowering supply of properties, according to a report by the Royal Institute of Chartered Surveyors (Rics).

The study, published today (May 26th), suggests that the private rental sector is recovering, with a net balance of 36 per cent of surveyors expecting the rises in rent to continue - the highest figure ever recorded by the survey.

Respondents posting an increase rather than decrease in rents last month rose from zero to 30 per cent, a significant upturn since last April, when 58 per cent said rents had dropped.

Rics suggested a decline in supply could be the reason that rents have increased, as 12 per cent more surveyors reported a decline rather than increase in the number of landlord instructions they had received.

Demand, on the other hand, is still strong with a net balance of 30 per cent of participants noting a rise.

The National Association of Estate Agents recently reported a growth in the housing market, with the number of registered house hunters up from an average of 274 per estate agent in March to 277 per in April.

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