Overall 90% are planning a rent rise, according to the survey by The Online Letting Agents. Some 51% plan to raise their rent by 3%, 33% plan by 5% and 6% by 10%.
The research also reveals that the majority of landlords are very optimistic about property prices, believing that they will continue to rise this year.
During the next 12 months, over a third of landlords predict that property prices will rise by between 6% and 10% in their area, whilst the majority, 65%, are more cautious, predicting price rises of up to 5%.
‘Whilst the latest buy to let index from LSL Property Services shows that the average rent has risen by only £5 in the last 12 months, from £736 to £741, this does not reflect the regional variations on rent prices. There is huge demand for rental property in the London and the South East and this is pushing up prices. For example, in parts of Essex, rents have risen by over 30% year on year,’ said Eleanor Carroll, director of The Online Letting Agents.
‘With potential rate rises on the horizon and a surge in demand for rental property, it is understandable that the majority of landlords are going to continue increasing rent prices. Our new research shows that confidence among landlords is running high, with a third saying they will boost their buy to let portfolios in 2014, in the wake of escalating property prices and a host of attractive buy to let mortgages,’ she explained.
‘Rapidly rising house prices have seen the typical buy to le let investor reap a huge 10.3% total return over the past year, adding up to almost £17,000 on average,’ she added.
Over the last 12 months the firm has seen a 60% increase in landlords signing up to its lettings service. Carroll said that this is a clear reflection of the growing buy to let market.
