Rising rent 'good news for landlords'

Posted: 27 May 2010 11:56:54 GMT

Landlords could benefit from an improvement in the lettings market, according to a survey.

Property rental prices have risen and the Royal Institution of Chartered Surveyors (Rics) believes that this could encourage more investors to approach the market.

Jeremy Leaf, Rics spokesman, said: "With sellers back in the housing market, supply has fallen back in the lettings sector. This is good news for landlords as rents are set to move higher."

Mr Leaf added that the review of capital gains tax (CGT) on property sales could also result in investors cashing in on the existing "more benign" tax system.

The organisation is putting the increased cost of renting down to a fall in the amount of flats and houses available in the buy-to-let sector because of the growing demand for these properties.

According to Paragon, landlords are also currently benefiting from an average portfolio value increase of 6.1 per cent.

This is the first time since 2008 that there has been a rise for two consecutive quarters.


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