Landlords are optimistic about the future of the rental market in 2016, with rising rents and high tenant demand set to remain themes of the sector.
The new Rent Check report, issued by auctioneers Allsop, reveals 41 per cent of landlords noticed an increase in demand for their properties over the last six months - and this trend is likely to be repeated in the coming months.
As a result, rents have been on the rise and are predicted to once again increase in 2016. In the last six months alone, an average rise of two per cent has been recorded across England and Wales.
Emma Wells, lettings director at Leaders estate agents, says: “2015 has undoubtedly been a good year for landlords, with tenant demand seemingly unrelenting. We expect more of the same in the new year, with rents likely to be pushed upwards in all parts of the country.
“Despite the introduction of a buy-to-let stamp duty in April, property will still prove to be an extremely attractive option in comparison with other investments. As a result, investors will continue to acquire rental properties and landlords will enjoy a good return.”
This certainly seems to be the case, with 17 per cent of landlords having bought a property in the last three months and 24 per cent admitting they plan to do so in the next year.
The Rent Check report identified several areas as being subject to significant growth in tenant demand, with the east of England leading the way with an average rise of 8.7 per cent in the rents charged for two-bedroom flats in the last 12 months.
It means the east of the country is outpacing even the south-east, where rents for this type of property increased by 6.7 per cent over the year in question.
Some 43 per cent of landlords questioned said they have raised rents in the last 12 months, while 32 per cent expect to do so in the next six months.
For advice you can trust on all aspects of letting or renting, please contact your local Leaders branch.