29% of landlords report rise in rental income in Q2

Some 29% of landlords say their rental income increased during Q2 2011, according to research conducted by Paragon.

The survey reveals 13% of landlords have increased rental rates across their portfolios by between 2% and 4%, with 4% of respondents saying they had increased rents by up to 6%.

Of those surveyed, 8% said that their rental income had risen by 2%, and 4% said it had increased by more than 6%.

Some 19% of small scale landlords reported rising rental income during the quarter, but 75% said rents remained unchanged.

For professional landlords, however, it is a different picture, with 32% saying their rental income had increased in the first quarter and only 2% saying that it had decreased in Q2.

Nigel Terrington, chief executive at Paragon Group, says: “Results from our latest research shows that rental income has increased steadily during Q2.

“Landlords are continuing to experience high levels of demand for their properties so have been able to make small increases to rent levels, without making accommodation unaffordable.”

He adds that demand for private rental accommodation shows no signs of waning, with 40% of landlords saying they believe tenant demand is either growing or booming and will continue to do so for the next 12 months.

Terrington says: “However, it is increasingly important that finance for landlords becomes more readily available, so landlords can respond to growing demand for rental properties.”