Majority of landlords plan to raise rents in next year

The majority (85%) of buy-to-let (BTL) landlords plan to raise rents on their properties in the next 12 months, Landbay has found.

The firm’s research revealed that of this proportion, more than a third (36%) said they plan to raise rents up by to 5%. This is an increase from 27% in Landbay’s 2023 survey.

Meanwhile, 37% intend to increase rents between 6% and 10%, which closely mirrors the previous results (38%), while less than one in 10 (8%) plan to raise rents between 11% to 19%.

Among those looking to raise rents, over two in five (42%) in this group was made up of landlords with between four and 10 properties, followed by those with 20+ properties at 28%.

Exactly half semi-manage their properties or portfolio, while 27% rely on an estate agent and 20% on a professional management company.

Sales and distribution director at Landbay, 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 rent to cover their outgoings."

While higher interest rates play a factor in what landlords charge for rent, so do higher operational costs. Of the landlords set to raise rents in this coming year, more than one in 10 (16%) pay in excess of 13% of their rental income on property management.

Under a third (30%) pay 5% of their rental income, while 29% pay between 9% and 12%.

Stanton added: "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."

Share Story:

Recent Stories

Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.