Rents to remain firm, says expert

Rental rates in the UK are set to "remain firm" and could even see steady growth this year, according to one industry organisation.

Tom Entwistle, director at online community LandlordZONE.co.uk, said recent rises in rent prices can be attributed in part to a fall in the number of "reluctant" landlords operating in the market.

"It is evident that many new and reluctant landlords have withdrawn from the market, either because they always intended to sell, or they are realising that letting is no longer the trouble-free road to riches they imagined," he said.

"On the other hand, demand from tenants, particularly in the south-east, is steady and could even be rising because of the difficulties in the recession."

Mr Entwistle's comments follow the publication of a report by FindaProperty.com, which revealed that asking rent in the UK increased by 0.7 per cent this month to £820 per calendar month.

However, despite the rise, Mr Entwistle advised landlords to research the area they are letting in and pitch their rent at the right level in order to avoid vacant periods.

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