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."



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