5 Jan

Buy to let owners to raise rents in 2011

Buy to let owners to raise rents in 2011

Buy to let owners have revealed their plans to raise rents over the next 12 months.

According to research by The Paragon Group, 41 per cent of landlords intend to increase their monthly charges in 2011, with 30.7 per cent saying they will raise the fee by four per cent.

This comes after Upad revealed last month that an increasing number of buy to let owners are confident about the marketplace.

It reported that 60 per cent of residential landlords were more assured about their position in December 2010 than they were the previous month.

Nigel Terrington, chief executive of the Paragon Group, said this decision to raise rents is the result of the "strong position" buy to let owners are in.

He commented: "Tenant demand has risen faster than supply during 2010 and that is expected to continue well into 2011. This is reflected in landlords' expectations of future levels of tenant demand."

Mr Terrington attributed the growing demand from tenants to the difficulty in borrowing money at the moment, forcing potential first-time buyers to stay in rental accommodation for longer. ADNFCR-1222-ID-800323646-ADNFCR

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