Landlords predict rent rises to tail off

On average UK landlords anticipate that rents will increase by 1.7% in the coming year, a sharp slowdown from the current rate of annual rent growth to a steadier trajectory. According to the latest Your Move/Reeds Rains Buy-to-Let Index, average residential rents across the UK climbed 3.7% in the year to March 2015, the fastest pace for two years.

The proportion of landlords who will not raise their rents in the next 12 months has increased from 56% in September 2014 to 60% currently. Only a minority of four in ten landlords (40%) intend to increase their rental prices before March 2016.

Over the last six months, 45% of landlords have seen an increase in tenant demand - up from 41% in September 2014. There has been a boost in lettings activity recently, with new tenancies agreed across England and Wales rising 6.9% in the month to March 2015. The proportion of landlords who expect tenant demand to grow further is now 63%, up from 56% in January 2014. Only 3% of landlords anticipate demand for rental properties to fall in the next two years.