The majority of buy-to-let landlords have said that they plan to raise rents in the coming 12 months, data from Landbay has revealed.
While nearly 85 per cent of landlords made this admission, more than a third (36 per cent) said they plan to raise rents by up to 5 per cent.
This is an increase from 27 per cent in Landbay’s previous survey in 2023.
Meanwhile, 37 per cent of respondents said they intend to increase rents between 6 and 10 per cent, which closely mirrors the previous survey’s findings of 38 per cent.
Less than one in 10 landlords (8 per cent) plan to raise rents between 11 and 19 per cent.
Landbay sales and distribution director, Rob Stanton, said: “Whereas before, rising rents would often reflect the increasing 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 increasing rents 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 buy-to-let market.
“At Landbay for example, 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 pay rate.
“This charge to affordability calculations is already proving popular and beneficial for both brokers and their clients.”
Portfolio size
The data also found that, among those looking to raise rents, 42 per cent is made up of landlords with portfolios of 4-10 properties, followed by those with 20-plus properties at 28 per cent.
Exactly half self-manage their properties or portfolio, while 27 per cent rely on an estate agent and 20 per cent on a professional management company.
While Landbay pointed out that higher interest rates continue to play a factor in what landlords charge for rent, it added that so do higher operational costs.
Of the landlords set to raise rents this coming year, 16 per cent pay in excess of 13 per cent of their rental income on property management.
Just under a third (30 per cent) pay 5 per cent of their rental income, while slightly less again (29 per cent) pay between 9 and 12 per cent.
These findings form part of Landbay’s latest survey which questions existing landlords on a variety of topics to determine their attitude and intentions.
tom.dunstan@ft.com
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