Landlords see rent rises as stock levels reduce

Landlords are seeing rising rents and falling stock levels again, according to property website FindaProperty.com.

The company’s rental index found that rents rose 0.7 per cent to £820 per calendar month (pcm) in March, the second consecutive month of rising asking rents, which are now £16pcm higher than in January.

But they are still 6 per cent off peak levels. The rises were fuelled by the lowest stock levels since October 2008. The company said it had detected the return to the sales market of so-called “accidental landlords who had been encour­aged in by rising prices and strong demand during the boom.

However, recent data from the housing market has suggested a slowdown in prices and mortgage approvals as measures to support the market have unwound.

FinaProperty said the regions had shown a mixed picture. Five showed increased asking rents, the highest being in the South East (+2.3% to £1,061pcm). Yorkshire and the Humber and Wales were stable, while the remaining four recorded declines, the biggest being in the North East of England (-2.3% to £605pcm).

The capital continues to lead the overall national recovery following seven months of rising rental values. Asking rents rose by 0.7 per cent in March, and are now 2.1 per cent higher than they were 12 months ago.

London was followed by Wales which has now had stable or rising rents for the past four months and the North West and Yorkshire and the Humber with three consecutive months.

Nigel Lewis, property expert at FindaProperty.com, said: “The rental market has had a tumultuous two years but those landlords who managed to hang on despite the oversupply of properties and falling rents can now see the light at the end of the tunnel.

“While rents are still a long way off the peak seen in early 2008, they are slowly rising and the current tightening supply levels as accidental landlords leave the market coupled with strong demand should ensure that returns for serious landlords continue to improve over the course of the year.”