25 Feb

Landlords enjoying higher rents

Landlords enjoying higher rents

Many landlords have seen a rise in rental income during the start of the 2015, according to a new survey of letting agencies.

Figures from the Association of Residential Letting Agents (ARLA) show one in four letting agents have reported an increase in private sector rents during January.

London continues to have the highest demand for rental properties and it takes an average of five viewings before a tenant is found for a UK rental property.

Overall, 27 per cent of letting agencies in the UK reported an increase in monthly rental figures in January 2015, compared to December 2014.

Landlords in the East of England increased their rents by the highest amount in the UK, with 35 per cent of tenants having to pay more, compared to 11 per cent in Wales.

David Cox, managing director of ARLA, explained the country's rental market remains strong for private sector landlords.
 
"With house prices still high, along with stricter lending criteria for mortgages, the rental market is currently a much more accessible and affordable option to buying," explained Mr Cox.

He added: "Due to this, the demand for rental property is increasing, which impacts the cost of renting and people are willing to pay more to secure their desired property. If house prices continue to rise in 2015, we expect this trend to continue in the rental sector."

ARLA members also reported an increase in the number of people registering with them to be able to view potential new homes. The largest increase came in London, where branches reported an additional 45 prospective tenants, compared to an average of 38 across the UK.

There has also been an increase in the number of properties coming available for rent, with the average number of managed rentals increasing to 184, with the East Midlands reporting an average of 266 per branch.

However, supply was less in London with just 140 properties per branch.

Mr Cox explained: "London has the highest demand for rental property on average per branch, yet supply in the area is the lowest out of any UK region. Many Londoners simply cannot afford to buy and therefore look to the private rented sector instead."ADNFCR-1222-ID-801777265-ADNFCR

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