Commenting, Boyle said: “This is promising news for landlords who have endured a difficult 12 months due to an oversupply in stock driving rents down.
“Thanks to accidental landlords returning to the sales market the number of available properties is reducing and pushing up rents. Potential buyers are also still struggling to meet the current mortgage requirements, especially the requirement for a minimum 20% deposit, so demand for rental property is strong.”
However he also warned that unless restrictions on buy-to-let lending are relaxed we could see a reverse of the situation last year and the UK could experience a surge in the number of reluctant tenants coupled with a severe shortage in housing.
The February FindaProperty Rental Index recorded the highest increases in rental asking prices in the north of the UK. However, HomeLet’s own rental index of actual rental prices achieved shows increases in the south and decreases in most northern areas.
According to HomeLet the areas north of London where rents rose in February were in metropolitan areas such as Birmingham and Newcastle. Everywhere else including Scotland stayed the same or dipped.
“HomeLet’s rental index shows property in the south represents a particularly good opportunity for cash-rich investors,” said John. “Also with house prices creeping up first-time buyers, particularly in the south, will continue to struggle to get a foot on the ladder.”
