LSL Property Services’ latest landlord survey indicates that for every investor who expects to lower rents, 39 expect to increase them.
Of the 1,223 landlords polled for the survey, 10 per cent are anticipating greater than 5 per cent rises.
Currently, average rents are rising at an annual rate of 3.4 per cent.
LSL Property Services commercial director David Brown says: “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, tenant demand has risen 43 per cent and 65 per cent of landlords expect this trend to continue over the next 12 months.