Landlords benefitting from rental rise

Average rents increased by 0.3 per cent last month, according to a new report.

Recently-released figures from LSL Property Services also revealed that buy-to-let landlords have seen rents increase by 3.2 per cent over the past 12 months.

According to the study, annual yields for 2009 reached 10.6 per cent, the highest amount for more than two years.

However, the growth is not set to conitinue, according to one industry body.

Alan Ward, chairman of the Residential Landlords Association, explained: "The figures make interesting reading – but if the Planning Use Classes Order takes effect in April, the rental market will be wrecked for landlords wanting to offer property to sharers like nurses, young professionals and students.

"The market hasn't woken up to the devastating potential unleashed by the Nimbys [not-in-my-backyard] in their studentification campaign."

Forecasts from the LSL report estimate that landlords are set to see returns of 8.5 per cent in over the next 12 months.

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