Now could be the time for those thinking about making the move to actually invest in British rental property, with the attitude of landlords nationwide suggesting that returns over the next few months could be set to improve greatly.
According to the latest report released this week by The Online Letting Agents, demand is now so high in the rental market that many landlords are actually looking to increase what they charge their tenants – a move which would see rental yields improve for many.
The market has been performing well for the past two years, and after weathering the storm of more and more people managing to get onto the ladder in 2013 thanks to governmental incentives, which had the potential to lower rental demand, it now seems that the private rented sector is ready to grow and perform very strongly again in 2014.
The report from The Online Letting Agents stated some 90 per cent of buy-to-let owners across the UK are looking to increase their rental prices in the next 12 months, which indicates just how widespread the current positive sentiment is across the country.
Of those who are looking to raise what they charge their tenants, the survey found that more than half (51 per cent) are looking to bring in three per cent more per property they own, while 33 per cent are aiming higher with a rise of five per cent.
Some six per cent are feeling so confident at the moment that they are even considering asking their tenants for ten per cent more for their rent in the next year.
“With potential rate rises on the horizon and a surge in demand for rental property, it is understandable that the majority of landlords are going to continue increasing rent prices. Our new research shows that confidence among landlords is running high, with a third saying they will boost their buy to let portfolios in 2014, in the wake of escalating property prices and a host of attractive buy to let mortgages,” said Eleanor Carroll, director of The Online Letting Agents.
She added that the fact house prices had risen in the last year was also an indicator of the positivity landlords have been welcoming across the course of the last year, with returns headed upwards by as much as ten per cent across the past 12 months.