A quarter of outer London buy to let investors have been able to increase rents on their properties in the past year, according to a study from the National Landlords Association (NLA).
The NLA research discovered that 23 per cent of outer London landlords have been able to increase rents on their buy to let properties. In contrast, 16 per cent were forced to reduce the monthly sum they asked for their property. The findings are good news for landlords located just outside the capital, as there is a general upward trend in rental pricing
However, in spite of this slight growth, the proportion of landlords raising rent in outer London is the second lowest in the UK. Only the North East fell below this, with just 18 per cent of landlords succeeding in boosting asking prices over the same time period.
In central London, 14 per cent of landlords have decreased rents over the last year. This suggests that supply is continuing to outstrip demand in the capital, leading to a slight decline in the buy to let market. This may be in line with general trends in the UK, which has seen rental prices slow slightly largely due to the influence of the London market. In contrast, the South West had the highest proportion of landlords who were able to increase their rents, at 42 per cent.
NLA chief executive Richard Lambert commented on the findings, saying: ‘These findings do not mean London is suddenly going to become more affordable for renters, but it seems to confirm that the trend of a softening of tenant demand in the capital is well-established. Both landlords and tenants are continuing to look outside of the capital to other centres and areas commutable to London which, if anything, will only serve to push up prices in those regions.’