The power tenants hold is growing across the UK, with 66% of landlords renting at below the market rate prepared to accept a reduction of up to £100 a month on the market value to secure reliable renters.
The survey conducted by Leeds Building Society further found that 16% of landlords are willing to sacrifice between £100 and £100 a month, with 6% claiming they would discount rent by over £200 per month for reliable tenants.
Brexit, economic uncertainty and an increased supply of rental properties were highlighted by landlords as reasons which could influence tenant demand in the future and make good quality tenants even more valuable.
In a bid to secure reliable tenants for properties, some landlords are foregoing rent increases and effectively subsidising tenants.
According to the BVA BDRC Landlords Panel study, 18% of property owners are renting more than three-quarters of their properties below market value.
Commenting, Leeds Building Society director of product and distribution Jaedon Green said: “Landlords are well aware of the impact Brexit and ongoing economic uncertainty could have on tenant demand. Research suggests landlords are actively seeking to retain and/or secure reliable tenants.
“The commercial rationale for landlords to invest in the quality of their rental property has never been stronger. Quality properties typically result in higher tenant satisfaction which results in fewer voids and improved rental yields over the longer term.
“This is positive news for tenants. The negotiating position for reliable tenants is strengthening as landlords are actively taking steps to maintain the security of regular payments from dependable tenants, even if that means reducing their monthly incomings slightly.”
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