Rental income has increased for the third consecutive quarter, research by specialist buy-to-let lender Paragon has revealed.
But while more than a third of landlords (34%) have increased rent levels across their property portfolio in quarter three, compared to 29% in quarter two, the latest rise equates to just a boost in rental income of just 1%.
Just over 10% of landlords said their rental income had increased by between 2% and 4%, whilst 13% of landlords increased rents above that level. Only 4% of the landlords surveyed for the quarterly report said they had experienced a decrease in their rental income.
It was also the larger landlords that applied the most rent rises. Almost four out of 10 (39%) professional landlords said their rental income had increased during Q3, whilst 75% of smaller-scale landlords reported their rental income remaining the same.
On average the overall increase for all landlords was 1%.
Nigel Terrington, chief executive of Paragon, said: “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.
“With tenant demand only looking to increase further in the coming months, landlords are likely to continue to experience increases in their rental income, especially given that 49% of landlords said they expect demand to further increase in the next 12 months.
“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.”
Comments
So why are we struggling to let four bedroom houses in the Huntingdon area even after reducing the asking rents - locally the market is not as buoyant as the reports may suggest.
Well said J H. Small fry ones want to DIY and save the fees and what do they get? What they deserve.
Last one I came accross had their £500k house turned into a canabis farm and all that lovely money they saved was spent 4 times over or more putting it right. Like I said - what they deserve.
So basically small fry landlords that don't know what they're doing are diddling themselves out of money. We are achieving rental increases of 15-30% on last year's rents!
Another good reason to use a progressive agent who also negotiates renewal prices for you.