Landlords with buy to let house insurance are bound to be interested in hearing about the latest news on rent in the private sector.
Greater tenant demand and lower levels of rental property coming onto the market pushed rents higher in the three months until April.
The most recent RICS Residential Lettings Survey, published this week, shows that 42 per cent more surveyors are reporting more rents rose, than fell, in the three months up to April.
And that’s up from 40 per cent more, which was the figure reported by surveyors in the previous month.
As so often found in recent studies, having home owner insurance remains out of reach for so many, partly because of the high deposits required by lenders when buying a home.
RICS spokesperson James Scott-Lee remarks that there’s “been a small uplift in supply, but the imbalance between demand and availability can only mean rents will continue to rise.”
The continued limitations to access of finance plays a part in this formula, but so does the cost of available mortgage finance.
As a result, surveyors report that many people have little choice but to rent from landlord insurance holders.
In the three months to April, 35 per cent more respondents reported demand rose rather than fell – the highest level for over two years.
Turning to supply of rental property to the market, 6 per cent more surveyors reported new instructions from landlords increased rather than fell.
And this takes the net balance into positive territory for the first time since April 2009.
Instructions from landlords to let flats showed the most pronounced change, with a net balance of +6 per cent (from -7 per cent).
The increase for houses was slightly less than in the previous three month period (+2 compared with +5 per cent).
Looking ahead, the overall rental outlook remains strong, with 33 per cent more surveyors expecting rents to rise rather than fall.
RICS spokesperson James Scott-Lee says: “Although we are beginning to see more mortgages aimed at first-time buyers, many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market.”
One of the biggest benefits with choosing an insurance expert such as Rentguard is that landlords can request specific cover to ensure that whatever use they have for their buy to let property, they can have the right landlord insurance cover to fully protect their investment.