Landlords

BTL landlords plan to raise rents

Rents

While almost 85% of landlords are looking to raise rents, 36% said they plan to increase by up to 5%

A significant majority of buy-to-let landlords have said that they plan to raise rents in the coming 12 months, reveals new data from Landbay.

While almost 85% of landlords are looking to raise rents, 36% said they plan to increase by up to 5%. This is an increase from 27% in Landbay’s previous survey in 2023. Meanwhile, 37% intend to raise rents between 6% and 10%, which is very similar to the previous survey’s findings (38%). Just 8% of landlords plan to increase rents between 11% and 19%.

Among those looking to increase rents, 42% is made up of landlords with portfolios of four to 10 properties, followed by those with 20+ properties at 28%. Exactly half self-manage their properties or portfolio, while 27% rely on an estate agent and 20% on a professional management firm.

While higher interest rates continue to play a factor in what landlords charge for rent, so do higher operational costs. Of the landlords set to increase rents this coming year, 16% pay in excess of 13% of their rental income on property management. 30% pay 5% of their rental income, while slightly less again (29%) pay between 9% and 12%.

The findings form part of Landbay’s latest survey which questions existing landlords on a range of topics to determine their attitude and intentions.

Rob Stanton, sales and distribution director at Landbay, said: Whereas before, increasing rents would often reflect the growing demand for good quality rental accommodation, today’s market now means landlords also have to factor in higher interest rates and operating costs too. With no alternative, many landlords have to consider raising rent to cover their outgoings.

As a large number of landlords look at their remortgage options, they can be encouraged by the innovation we have seen from lenders across the BTL market. At Landbay for instance, we have just expanded our like-for-like remortgage range with new two-year fixed and tracker products – supported by new lower stress testing at just payrate, he added.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Invest for Property. The information provided on Invest for Property is intended for informational purposes only. Invest for Property is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Leave a Reply