More than 40% of landlords are likely to increase rent on one or more properties during the next year despite tenants’ ability to pay rent being their number one concern.

A HomeLet/Dataloft survey of 1,000 landlords found that over half of them would be raising rent to cover their increased costs while an additional third would do so in response to market pressures. Concerns about the abolition of Section 21 notices and other taxation or legislative issues also rate highly.

Top concern

However, the study found that 36% of landlords have no plans to increase the rent on any of their portfolio over the next 18 months – no doubt a relief to the 78% of renters who are worried about how they will pay their rent. In the firms’ other study of 12,000 renters it is ranked by one in four as their top concern in the next year, closely followed by worries about landlords increasing rent.

HomeLet CEO Andy Halstead says landlords know the pressure on tenants, but sometimes have to put rent up due to growing costs. “There simply isn’t enough housing stock,” he explains. “Many landlords are choosing to exit the market, which only causes further strain on stock levels and letting agent businesses.”

Rough ride

Adds Halstead: “The government’s commitment to legislation in the market through the Renters’ Reform Bill will provide the most significant change to rental law in a generation and I can’t see any positives. We are in for a rough ride.”

sandra jones dataloft

Dataloft MD Sandra Jones believes lessons can be learned from the build-to-rent sector where providers understand the importance of consistently managing customer expectations. “They use their scale and resources to negotiate with utility suppliers, offering greater security and cost predictability,” she adds. “With costs and concerns rising, this is a time when all renters will value a professional and engaged relationship with their landlord.”

6 COMMENTS

    • Please define at what price point you consider LL greed occurs!!?
      Surely MARKET RENTS are NOT greed?
      It is what the market can bear.

      It is IRRELEVANT whether or NOT all tenants can afford or CHOOSE to afford such market rents.

      IF a LL attempts to charge more than market rents then he may find his rental propertie EMPTY!!
      There is NO such thing as a greedy LL!!!
      Charging market rents does not a greedy LL make!!

      A more constructive response would be as to why the market is as it is.

      LL don’t make markets.
      They respond to how they are.

      A classic example being LL response to S24.

      S24 LL had to increase rents to cover the additional costs for NO additional profit.
      LL willalways have their own individual ciecumstances which will cause them to set rents at what they tequire.

  1. Another “win” for Shelter. I notice Polly Neat was talking-up the rental reform bill on Twitter. You can’t help but wonder if she has any idea they are doing is kicking own goal after own goal. Though I’m not sure the likes of Shelter care. Happy to burn the people they are supposed to represent to further their wider leftie agenda.

    • She has to do this to give the impression to those gullible enough to believe her that she’s doing a great job and deserves her high salary. She will do well out of this and won’t give a stuff about the people she is supposed to represent.

  2. Will Polly Neat and all Shelter Executives reduce their pay to minimum wage?
    Isn’t it about time Shelter lobbied Government for more Social Housing?

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