Rental Prices And Yields Rise
UK Landlords Set To Profit
The survey found that the number of UK property agents who reported higher rents had risen by 19% in the 3 month period.
15% more also said that rental yields rose between August 2011 and October 2011, the seventh quarterly increase in a row.
PRS landlords are likely to increase their rents next year, while mortgage lending in the buy-to-let sector is forecast to remain subdued.
The figures reflect the growing demand in the UK rental sector, as many Britons find it hard to secure mortgage finance in the current economic situation. The ailing house sale market also causes demand for rental properties to rise.
PRS Rent has been on the rise throughout 2011, with average property rental payments around £720 in October, a record high
RICS also found that the number of family homes available for rent has increased because many owners cannot find a buyer, while fewer homes are now being sold after the initial rental agreement (AST) ends.
Private Rental Sector landlords are taking significant steps to ensure that their future rental income is protected,
Landlords should ensure prospective tenants are referenced prior to the start of a tenancy and the landlord should take out comprehensive buy to let or landlord insurance to protect their property asset. Additionally, Rent Guarantee products are continually being improved to afford PRS landlords even greater financial security.
Such steps may seem a little extreme to some, but landlords who are able to prove their financial worthiness to lenders will generally have more success in obtaining a buy to let mortgage for a property, and building a stable property rental business with suitable measures in place to protect rental income reassures lenders that their money is in safe hands.
