The property website Rightmove published its Consumer Confidence Survey on 3rd December and it suggests that landlords are “tempering their rental expectations” for 2013. The survey shows that only one in four landlords indicated that they had already decided to increase their rents over the next year, with only 35% of these planning to increase rents by more than 5%.
Rightmove reckon that taking all landlord intentions into account the average rent looks set to increase by something like 2% in 2013. At this time of the year landlords insurance cover clients may well be thinking about what the New Year holds in terms or supply and demand in the rental sector. A visit to the Rightmove blog could well be time well spent. The more information you can gather about the likely shape of the market the better. This is especially true for new landlords. Many of our clients are people who unexpectedly find themselves with a property that needs renting out and they often need all the help they can get to manage it profitably and effectively. Some property owners have inherited houses while others have bought new homes without selling their old ones. Other newcomers to the rental property business are people who have some cash to invest and decide to put it into bricks and mortar.
Rightmove’s survey indicates that 61 of landlords are planning to hold existing rents with only 1% expecting to reduce rents. One bit of information that may be a comfort to existing buy-to-let landlords is that the data suggests that average rents have increased by 13.64% between the third quarter of 2009 and the third quarter of 2012. This just goes to show how much demand there has been from renters over the last few years. The big question for the owners of let property is will demand remain as strong in the near future? No one can know the answer to this for sure and so much depends on the area of the country and the type of property concerned. Anyone thinking about becoming a landlord will be well advised to take advice from as many trusted sources as possible.