Buy To Let Updated:
A new survey has revealed landlords in England are reaping the benefits of a buoyant rental market, with around 41% ramping up monthly rental costs over the past year.
The Rent Check Report by the market research company, BDRC Continental and the property consultants Allsop LLP found almost a quarter of landlords plan to increase the number of properties held on their rental portfolios over the coming year, as demand from tenants remains strong.
The majority of the 1,500 property investors questioned appear optimistic with the current rental and buy-to-let mortgage market, with 61% stating that they were confident at the prospects of their rental businesses.
The private rental accommodation market is at present the fastest growing tenure, with rented homes accounting for around 3.8 million (17%) of all households in England.
The cost of renting a property has grown over the past couple of years, particularly in the London boroughs.
Renting a typical two-bedroom flat in the capital sets tenants back at least £1,060 per month, whilst monthly payments for a three-bedroom semi-detached property stand at around £1,435, more than double that of an average rental home in the North East at £500.
Paul Winstanley, partner at Allsop LLP, said: "The demand for rented housing and the constraints on the wider housing market mean that rented housing is likely to retain the same income dynamics for the medium to long-term.
"The rented sector is growing at such a rate that landlords will share in a secure and attractive return," he said.
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