The majority of buy-to-let landlords have stated that they plan to increase rents within the coming 12 months, new knowledge from a survey from Landbay reveals.
While almost 85% of landlords made the admission, greater than a 3rd (36%) stated they plan to increase rents by up to 5%. This is a rise from 27% in Landbay’s earlier survey in 2023.
Meanwhile, 37% intend to improve rents between 6 and 10%, which intently mirrors the earlier survey’s findings (38%). Less than one-in-ten landlords (8%) plan to increase rents between 11 and 19%.
Among these trying to increase 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 an expert administration firm.
While greater rates of interest proceed to play a consider what landlords cost for rent, so do greater operational prices. Of the landlords set to increase rents this coming 12 months, greater than one-in-ten (16%) pay in extra of 13% of their rental revenue on property administration.
Just beneath 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 a wide range of matters to decide their angle and intentions. The survey uncovered the important thing elements going through 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 replicate the rising demand for good high quality rental lodging, in the present day’s market now means landlords even have to consider greater rates of interest and working prices too. With no various, many landlords have to contemplate rising rent to cowl their outgoings.
“As a lot of landlords take a look at their remortgage choices, they are often inspired by the innovation we’ve seen from lenders throughout the buy-to-let market. At Landbay for instance, we’ve simply expanded our like-for-like remortgage vary with new two-year fastened and tracker merchandise – supported by new decrease stress testing at simply payrate.”
He added: “This change to affordability calculations is already proving common and useful for each brokers and their purchasers.”
(Landbay surveyed its total landlord database of greater than 1,500 landlords.)
