Landlords see rents rise

Posted: 11 Mar 2008 11:17:29 GMT

UK landlords benefited from increased rents in the three months to February 2008.

UK landlords benefited from increased rents in the three months to February 2008.

That is according to new figures from the Association of Residential Letting Agents (Arla), which revealed that prime central London saw the most impressive growth.

The region saw average rents increase by nine per cent, which translates into a £3,000 annual increase.

Rents paid on houses increased by four per cent in that time, according to the study, while rents on flats rose by two per cent.

It is good news for buy-to-let property investors and shows that the current climate in the housing market suits landlords.

Ian Potter, head of operations at Arla, said: ""We are seeing the beginning of the inevitable.

"Whenever property prices soften or fall, rental demand, rents and yields always increase.

"As we begin a year of uncertainty in the sales market, it is inevitable that our member letting agents should report that they have more tenants than properties available for them," he continued.

Paragon recently revealed that rents, yields and total returns increased in 2007.

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