Landlords & Rental Prices

HomesNow - CN Property News - house moneyThe belief that last yearís strong demand in the UK private rental sector will continue into 2011 has inspired four out of 10 landlords to plan rent rises over the coming 12 months. According to research from buy-to-let mortgage specialist, Paragon, 41% of landlord respondents are looking to increase rents, with 30.7% of this group preparing for a 4% hike and 10% proposing a rise of between 4% and 8%.Only 4% of landlords surveyed are likely to surprise prospective tenants with a rent reduction during 2011.

Meanwhile, the latest Buy-to-Let Index from LSL Property Services shows the average rent in the UK rising to £692 per month in November, having increased for the tenth month in a row. However, growth slowed to 0.1% during the month, with rent rises ending altogether in several parts of the country .

The east of England and the East Midlands reported falls of 3.1% and 2.4% respectively, while rents dropped by 1.9% in the South East and by 0.6% in the North West. Novemberís marginal gain was, in fact, largely driven by rents rising by 1.8% in London, to £992 per month.