Three-quarters of landlords either have, or plan to, lift rents for tenants “in the face of increasing costs,” a poll for the Deposit Protection Service shows.
It says 40% of buy-to-let owners have increased rents during the past 12 months, while another 35% plan to do so “in the near future,” reports the survey by the firm that holds tenancy deposits.
The study comes as the Bank of England’s Monetary Policy Committee will set rates on Thursday. The body has lifted the base rate 14 times since December 2021, although it held rates last month.
It also comes after the average advertised rent for new properties on the market hit another new national record of £1,278 per calendar month, according to the latest Rightmove Rental Tracker earlier this month.
This was the 15th consecutive quarter that average advertised rents posted a new record.
The landlord’s poll found that 68% of property investors said that rising costs relating to legislation and compliance were key factors in their rent rises.
While 62% mentioned maintenance cost hikes, and 55% said rent rises were necessary because of rising risks, such as the proposed abolition of, Section 21, no-fault evictions, currently being debated in the Renters Reform Bill in the House of Commons.
The survey found that 72% of landlords added that keeping rents in line with their local rental market was “an influential or very influential” factor in their decision to increase letting prices.
Deposit Protection Service managing director Matt Trevett says: “Demand for rental property remains high, and our survey suggests most landlords see a future in the rental market.
“However, landlords have also told us that their costs have increased recently, particularly as a result of higher interest rates – and it seems a large proportion are raising rents to cover their expenses.
“Clearly increases to interest rates and the cost of living will also be affecting some tenants, and we’d encourage both renters and landlords to have an open and constructive dialogue about financial pressures in the current economic climate.”
