UK Landlords See Income Growth in Q1 2011

A recent survey carried out by Paragon, buy to let mortgage provider, showed that almost 30% of UK landlords reported increases in profit in the first quarter of 2011.

As such, 10% of landlords said their rental income grew by 2%, another 10% claimed the rise amounted to 2-4%, while further 5% said they saw growth of 8% and more.

The survey also revealed that 32% of landlords increased rent rates in the first three months of this year.

Commenting on the results of the research, Mr. Terrington of Paragon Group, said that "supply and demand dictates rental pricing and landlords are experiencing significant tenant demand for their properties at present."

Official statistics suggests that the buy to let sector currently accounts for 15.6% of all households in England. This is up from 14.2% in 2008/2009 and 11.7% in 2005/2006.

UK buy to let lending also increased in 2010 by 22%, however, experts are determined that banks still need to provide landlords with mortgages to ensure that the sector expands.