Rising living costs and interest rates are causing concern among landlords, as 44% said they have financially supported their tenants during the last 12 months, such as reducing or pausing rent, according to research from The Landlord Works.

The research, which was conducted between January and March included 729 UK landlords, found that around three quarters (74%) of landlords say they feel a responsibility to support their tenants during times of financial hardship.

Landlords said they could reduce their rents by an average of 7.6% before coming under pressure, which equates to around £50 per property a month based on a typical landlord’s rental income.

While many are able to reduce rent, close to half (45%) of all landlords say any reduction would harm them financially. 

Around four in ten (38%) said they intend to keep rents the same for the next year, while 55% say they need to increase rents over the next 12 months. It also showed that 25% plan to raise the rent on all their properties.

In terms of rising rates, landlords with larger portfolios are more likely to increase rent on at least some of their properties, the research shows. 

Three quarters (75%) of those who own more than 10 properties aim to increase their rents over the next 12 months, compared to just 44% of landlords owning between one and three properties. 

Of those with small portfolios, 46% plan to keep rents the same. 

Across the regions, landlords in Yorkshire and The Humber (68%), outer London (65%), the North West (63%) and Wales (63%) are most likely to increase rents on some or all of their properties over the next 12 months.

Those landlords using their rental properties to offset their mortgages are also more likely to raise rents, with 63% planning an increase compared to just 44% of unleveraged landlords.

Despite plans to increase rent, 57% of landlords are concerned about whether their tenants can maintain their rental payments, with 13% admitting they are very concerned. 

This increases to 74% of landlords who let to claimants of Local Housing Allowance and 71% of landlords who let to retired people.

In terms of the support offered to tenants by 44% of landlords, temporary rent reductions (22%) and rental payment holidays (15%) are the most common options with landlords also offering payment rent reductions and additional money to support their day-to-day living.

The Landlord Works director Paul Wootton says: “Landlords are facing a real dilemma at the moment in dealing with the continued rising cost of living. On the one hand, there is a need to ensure they can cover the increasing costs associated with their properties and ensure they are following the market. However, as our research demonstrates, they are also acutely aware of the financial challenges facing their tenants.”

“It’s great to see such a high proportion of landlords feel a sense of responsibility towards supporting these tenants during these challenging times. And in a lot of cases, this sentiment has been met by financial support for their tenants over the last twelve months. While we will see rents rise over the coming months in many cases, we can also expect landlords to offer continued support at what is a tough time for many,” Wootton adds.