Moderate rise in rents expected in 2012

January 19th, 2012 | by Ashley Martin |

Landlords should expect to see rents rise moderately in 2012, according to predictions from Belvoir Lettings.

Managing director Dorian Gonsalves predicted that there will be large fluctuations in income across regions, with the south-east expected to benefit from high prices in London pushing people out of the capital into the home counties.

Elsewhere, he predicted “relatively stable rents”, with increases that were “very modest”, perhaps leading landlords to reduce their outgoings in other fields, such as their landlords insurance.

“I predict that increased rents and stable or decreasing house prices will result in increased rental yields in 2012. However, this is clearly very dependent on the outcome of the eurozone crisis and its impact on credit and borrowing,” he added.

Mr Gonsalves also predicted 2012 will see more people adopting renting as a lifestyle choice, allowing them to plan spending better and move for job offers.

Continuing with this trend, Matt Hutchinson, director at SpareRoom, recently suggested a greater number of landlords are to look to let properties by the room, as the profile of the average renter changes, to take advantage of higher yields.

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