The majority of buy-to-let landlords have mentioned that they plan to boost rents within the coming 12 months, new information from a survey from Landbay reveals.
While almost 85% of landlords made the admission, greater than a 3rd (36%) mentioned they plan to boost rents by as much as 5%. This is a rise from 27% in Landbay’s earlier survey in 2023.
Meanwhile, 37% intend to extend rents between 6 and 10%, which carefully mirrors the earlier survey’s findings (38%). Less than one-in-ten landlords (8%) plan to boost rents between 11 and 19%.
Among these trying to elevate rents, almost half (42%) is made up of landlords with portfolios of 4-10 properties, adopted by these with 20-plus properties at 28%. Exactly half self-manage their properties or portfolio, whereas 27% depend on an property agent and 20% on knowledgeable administration firm.
While increased rates of interest proceed to play a consider what landlords cost for hire, so do increased operational prices. Of the landlords set to boost rents this coming 12 months, greater than one-in-ten (16%) pay in extra of 13% of their rental revenue on property administration.
Just underneath a 3rd (30%) pay 5% of their rental revenue, whereas barely much less once more (29%) pay between 9 and 12%.
The findings kind a part of Landbay’s newest survey which questions present landlords on quite a lot of matters to find out their angle and intentions. The survey uncovered the important thing elements dealing with landlords and their ideas on upcoming regulation and the way forward for the buy-to-let market.
Landbay director of gross sales and distribution Rob Stanton commented: “Whereas earlier than, rising rents would usually mirror the rising demand for good high quality rental lodging, as we speak’s market now means landlords additionally need to consider increased rates of interest and working prices too. With no various, many landlords have to contemplate rising hire to cowl their outgoings.
“As a lot of landlords take a look at their remortgage choices, they are often inspired by the innovation we have now seen from lenders throughout the buy-to-let market. At Landbay for instance, we have now simply expanded our like-for-like remortgage vary with new two-year mounted and tracker merchandise – supported by new decrease stress testing at simply payrate.”
He added: “This change to affordability calculations is already proving well-liked and useful for each brokers and their shoppers.”
(Landbay surveyed its total landlord database of greater than 1,500 landlords.)
