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29 August 2012

Tenant demand bolsters buy-to-let confidence

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by Gill Montia

Tenant demand bolsters buy-to-let confidence

Landlord confidence in buy-to-let has been bolstered by strong tenant demand and attractive purchase prices, according to the latest landlord sentiment survey from LSL Property Services.

Nearly half of landlords (48%) polled believe now is a good time to invest, while less than 1% think it is time to reduce their portfolios.

The study also reveals that the vast majority of landlords keen to expand are swayed by attractive property prices, while 53% mentioned strong tenant demand.

The strength of tenant demand has been the driving force behind recent rent rises, with LSL’s latest buy-to-let index showing average July rent at a record high of £725 in England & Wales.

The trend would seem to be unstoppable, with 44% of landlords having seen a rise in tenant demand in the past six months, compared with just 1% having seen a decrease.

Investors are expecting growth to continue and two thirds of landlords polled anticipate demand will increase further in the next twelve months.

Four in ten landlords expect to increase rents in the year ahead, with the average anticipated rise standing at 4.5%.

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