More than a third of landlords (34%) have increased rent levels across their property portfolio in quarter three, compared to 29% in quarter two.
Just over 10% of landlords said their rental income had increased by between 2% and 4%, whilst 13% of landlords increased rents above that level. Only 4% of the landlords surveyed for the quarterly report said they had experienced a decrease in their rental income.
Almost four out of 10 (39%) professional landlords said their rental income had increased during Q3, whilst 75% of smaller-scale landlords reported little change, with their rental income remaining the same. On average the overall increase for all landlords was 1%.
Nigel Terrington, chief executive of Paragon, said: “Tenant demand has been growing for a number of years, but in recent months it has accelerated considerably.
“As the report shows, a third of landlords are benefiting from increases in rental income without making their properties unaffordable for tenants.
“With tenant demand only looking to increase further in the coming months, landlords are likely to continue to experience increases in their rental income, especially given that 49% of landlords said they expect demand to further increase in the next 12 months.
“It is crucial then, with increases in demand, that investment continues to be made in the private rented sector, ensuring that it remains fit for purpose and continues to provide good quality and affordable housing to millions of tenants.”