Landlords expect rents to rise and tenant demand to continue but have found it harder to access mortgage finance
According to a sentiment survey of more than 1,100 landlords conducted by Your Move and Reeds Rains, landlords estimate that rents will increase by 1.8% in the next twelve months which is lower than the Bank of England’s 2% target for inflation. The majority of landlords polled however, do not intend to raise their rents in the next year.
Over the last six months, 41% of landlords report seeing a rise in tenant demand. Which means the proportion of landlords who expect tenant demand to increase further now stands at 63%, up from 56% in January. As a result, 22% of landlords intend to expand their portfolio over the coming year – an increase from 18% in January 2014.
For 42% of landlords trying to raise mortgage finance in the last twelve months has been more difficult compared to a year ago. This is an increase from 35% in January 2014, highlighting the impact of a tighter lending environment.
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