Growing numbers of landlords are choosing not to increase rents in a bid to keep their tenants and protect them from cost-of-living pressures, new research has found.

TDS Charitable Foundation’s poll of more than 2,000 private landlords in England reveals that half (50%) had kept their rents unchanged over the previous 12 months, compared with 39% in last year’s survey. It found 47% made the decision to keep tenants while 44% cited tenants’ cost-of-living pressures.

Landlords were less likely to have increased rents if they had no property debt or borrowing, owned only one rental property, or had never used a letting agent.

However, the research also found that 48% of landlords had increased rents at least once over the previous 12 months. They typically blamed higher running costs, increased property maintenance expenses and the wider cost-of-living crisis.

Portfolios

Landlords who had increased rents were more likely to have larger property portfolios, incomes of £100,000 or more, own at least one HMO, or use a letting agent.

The research also examined the extent of rent arrears and how landlords respond when tenants fall behind on payments. Just over a quarter (26%) reported having at least one tenant in rent arrears, a slight fall from 29% in the previous year’s survey.

When dealing with arrears, landlords mainly engaged directly with tenants to discuss their options (42%) or provided information about their rights and available support services (39%). More than one in five (21%) had agreed a repayment plan with tenants, while 17% offered a rent-free or reduced-rent period to provide financial breathing space.

Financial

Dr Jennifer Harris, head of policy, research and social impact at The Dispute Service Group, who carried out the research, says decisions about rents are rarely straightforward. “While retaining good tenants and recognising the financial challenges they face are important considerations for many landlords, they are facing pressures of their own, with rising running and maintenance costs continuing to influence decisions about rents.”

It’s been reported this week that tenant groups have been vociferously encouraging renters to challenge rent increases, while Propertymark has highlighted how using a Section 13 doesn’t always work in a landlord’s favour; one Manchester-based landlord who applied to charge an extra £50 a month had the existing rent cut by £200 after a tenant challenge.

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