Landlords aim to boost rent prices

It's not easy being a tenant - for one thing, the costs have been rising recently. And they look like they will continue to do so, with 41% of private sector landlords looking to put up their rents in 2011.

Buy-to-let lender the Paragon Group reported that a further 55% of landlords plan will keep their prices at the present level, while just under 5% say they will drop their rents.

Around 33% of private sector investors will boost their prices by as much as 4%, while one in ten are aiming to raise rents by between 4% and 8% of the current cost.

Rents reached record levels in the latter six months of 2010 thanks to soaring demand, with would-be buyers struggling to raise funds for mortgages.

Nigel Terrington, chief executive of the Paragon Group, said: "Landlords are in a strong position. Tenant demand has risen faster than supply during 2010 and that is expected to continue well into 2011.

"There continues to be a lack of finance available in the UK mortgage market, meaning that many potential buyers are opting to rent instead. Meanwhile, many of the factors that have driven tenant demand in recent years, such as positive net migration, high student numbers and people preferring to buy later in life, are continuing."

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