According to Belvoir, a UK specialist lettings agencies, new tenants will have to pay substantially more for a similar property than they did two years ago.
The Belvoir monthly rental index, produced by 140+ offices nationwide, has shown a steady rise in rental income across the country throughout 2010. The latest figures show a further rise in rents from £695 to £700 and in September the network fee income rose by 9.8%, setting a new company record.
Belvoir MD, Dorian Gonsalves, says:
"As the fallout from the Government's Comprehensive Spending Review (CSR) continues, it is clear that the impact on the housing market and private rental sector (PRS) will be significant.
"However, contrary to many knee jerk responses within online forums and industry blogs, I strongly believe that these exceptional market conditions, which include falling property prices, continued low interest rates and unprecedented tenant demand, now makes buy to let (BTL) a fantastic opportunity for long-term landlords.
"However, it is clear that our Government needs to better understand and take note of the needs of the PRS, and the critical role landlords play within the housing sector. Many industry bodies are asking the Government to help support the PRS by offering incentives to landlords and to increase pressure on lenders to make funding more accessible.
"With an estimated 490,000 public sector job cuts planned, and the residential sales market bracing itself for another dip, the situation is predicted to continue for the foreseeable future and new BTL landlords will be attracted by higher yields and attractive purchase prices.
"Belvoir is well placed to provide unique and expert advice to landlords looking to extend their portfolios. An annual grow figure of 10% is further evidence of Belvoir's continued success."
