Just under 40 per cent of the 1,223 landlords polled by LSL Property Services expect to increase rents in the coming 12 months, with 10 per cent anticipating rises greater than 5 per cent.
Those expecting to raise rents estimate they will do so by an average of 4.6 per cent. Currently, average rents are rising at an annual rate of 3.4 per cent, according to LSL.
David Newnes director of LSL Property Services, said: “Fierce tenant competition in 2012 enabled many landlords to raise their asking prices when letting their properties, preventing inflation from eating into their rental income and this is likely to continue in the next 12 months. Pension savers have been hit particularly hard by the Autumn Statement, and as rental incomes improve, buy-to-let looks increasingly attractive as an alternative long-term investment.”
In the past six months, 43 per cent of landlords have experienced a rise in tenant demand, with only one in twenty seeing demand decrease.
Landlords who think now is a good time to buy rental property cited attractive property prices (84 per cent) and strong tenant demand (52 per cent) as the two most attractive reasons.