Rise in rental income

31 03 2011

Hello from Stoke,

Here is an extract that we came across that we thought may be of interest…

ALMOST a third of landlords have increased rents during the first quarter of the year, according to research from buy-to-let mortgage specialist Paragon.
The survey showed that 32% of landlords have raised rents across their portfolios during the period.
One in 10 landlords said that rental income across their portfolio rose by up to 2% during the period, with a further 10% stating that it rose by between 2% and 4%. However, nearly 5% of respondents said that rental income had risen by more than 8%.
Nigel Terrington, Paragon Group chief executive, said: Supply and demand dictates rental pricing and landlords are experiencing significant tenant demand for their properties at present.
Obviously, landlords do not want to make rented accommodation unaffordable, but a considerable proportion of them have been able to make small increases to their overall rental income during the first quarter.
He said: Government figures show that nearly 300,000 extra households moved into privately rented accommodation in England alone last year and that is placing increasing strain on stock in the sector.
It is encouraging that buy-to-let lending increased by 22% during 2010, but more needs to be done to ensure that the private rented sector can expand to sufficiently meet tenant demand.
Government figures published last month show that the number of households renting privately has risen from 2.4m in 2006 to 3.4m now.
The sector now accounts for 15.6% of all households in England, up from 14.2% in 2008-09 and 11.7% in 2005-06. This equates to nearly one in every six households.
 
by Henryk Zientek, Huddersfield Daily Examiner
Mar 29 2011
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