Landlords with buy to let insurance continue to see an increase in rental returns from their investments.

According to the latest April 2011 RICS UK Residential Lettings Survey rents are going up due to a combination of rising tenant demand and low levels of rental property coming onto the market.
Rents are increasing across the whole of the UK - but London and the South East are seeing the biggest rises.

And the situation could well remain this way for some time to come because RICS also reveals that many would-be buyers are unable to purchase property as a result of restricted mortgage finances and high deposits required by lenders.

Unable to buy, these people often have no choice but to rent property.

According to RICS, looking ahead, the overall rental outlook remains strong. Around a third more (33%) surveyors expect rents to rise rather than fall.

RICS UK spokesperson James Scott-Lee said: “Although we are beginning to see more mortgages aimed at first-time buyers, many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market.”

With demand unrelenting, landlords need to make sure they look after their property so it continues to bring them regular income.

Getting the right cover for your needs on landlord insurance will help should things go wrong.