Agents say landlords unlikely to raise rents

Landlords anticipate that rent rises will taper off over the next twelve months, according to a sentiment survey conducted by Your Move and Reeds Rains.

On average landlords anticipate that rents will increase by 1.7 per cent in the coming year, a sharp slowdown from the current annual rise of 3.7 per cent.

The proportion of landlords who will not raise their rents in the next 12 months has increased from 56 per cent in September last year to 60 per cent currently. The remaining 40 per cent aim to increase their rental prices before March 2016.

Over the last six months, 45 per cent of landlords have witnessed an increase in tenant demand. The proportion of landlords who expect tenant demand to grow further now stands at 63 per cent, up from 56 per cent just over a year ago.

However, strong demand for homes to let is a considerable factor encouraging further investment into the private rented sector. Three in five landlords now believe that it is a good time to invest in buy-to-let - most believe buy-to-let offers better capital returns compared to other forms of investment.

Meanwhile 40 per cent of property investors perceive now to be an ideal time given that current market conditions offer the opportunity to buy properties at more attractive prices, as prices are roughly static.