U.K. Rent Inflation Will Slow in 2013 on Supply, Rightmove SaysScott Hamilton
U.K. residential property rent inflation will slow this year as purchases by landlords boosts supply, Rightmove Plc said, citing a survey.
Seventy-four percent of professional landlords intend to expand their portfolios in 2013, the London-based property company said in an e-mailed report today. Investors will be lured by tenant demand and “attractive” returns, it said.
“Buy-to-let investors, attracted by evidence of sustained demand and strong yields, will provide much needed supply relief,” said Miles Shipside, director and housing market analyst at Rightmove. “Greater supply of rental property coming on tap is good news for tenants.”
Eighty-eight percent of landlords said the minimum average return they are seeking is 5 percent, Rightmove said. The average U.K. rental yield is 5.73 percent, meaning the “right balance of rent versus return is being achieved,” according to the report.
Separately, Lloyds Bank said a measure of companies’ expectations for trading in the next year rose 6 points to an 18-month high of 46 in January. An index of optimism about the economy fell to a four-month low, it said.
A U.K. gauge of new job growth climbed to 138 last month from 134 in December, recruitment company Reed.co.uk said.