UK rents expected to rise in 2011

Individuals with buy-to-let property in the UK will be encouraged to hear that rents in the country are expected to rise next year. According to specialist residential letting agent Belvoir, high demand for homes combined with the inability of potential property owners to get loans will play a part in the increase. Dorian Gonsalves, managing director of the organisation, is optimistic about the future for the buy-to-let market as the impact of the comprehensive spending review takes hold. He explained that the reasons for the increase in rents which have been seen this year are a result of the continued national shortage of rental properties and constantly-increasing demand from tenants. "The exceptional economic conditions that we are currently experiencing are predicted to continue for the foreseeable future. Potential homeowners will continue to have difficulties obtaining mortgages and saving for a deposit," he said. "With an estimated 490,000 public sector job cuts planned, the residential sales market is bracing itself to face another dip."