Third of landlords see rise in rental income in Q3

Over a third of landlords, 34%, increased rent levels across their portfolio in Q3, up from 29% in Q2, according to research from Paragon.

Some 10% of landlords said their rental income had increased by between 2% and 4%, while 13% of landlords said it had risen by over 4%, and 4% of respondents said their rental income had fallen.

Professional landlords saw a greater increase in rental income, with 39% reporting a rise in Q3, while 75% of smaller-scale landlords said their income remained the same.

The average increase for all landlords was 1%.

Nigel Terrington, chief executive of Paragon, says: “Tenant demand has been growing for a number of years, but in recent months it has accelerated considerably.

“As the report shows, a third of landlords are benefiting from increases in rental income without making their properties unaffordable for tenants.”

He says that with tenant demand expected to increase further in the coming months, landlords are likely to continue to see increases in their rental income.

Terrington adds: “It is crucial then, with increases in demand, that investment continues to be made in the private rented sector, ensuring that it remains fit for purpose and continues to provide good quality and affordable housing to millions of tenants.”