The majority of buy-to-let landlords have said that they plan to raise rents in the coming 12 months, new data from a survey from Landbay reveals.
While nearly 85% of landlords made the admission, more than a third (36%) said they plan to raise rents by up to 5%. This is an increase from 27% in Landbay’s previous survey in 2023.
Meanwhile, 37% intend to increase rents between 6 and 10%, which closely mirrors the previous survey’s findings (38%). Less than one-in-ten landlords (8%) plan to raise rents between 11 and 19%.
Among those looking to raise rents, nearly half (42%) is made up of landlords with portfolios of 4-10 properties, followed by those with 20-plus properties at 28%. Exactly half self-manage their properties or portfolio, while 27% rely on an estate agent and 20% on a professional management company.
While higher interest rates continue to play a factor in what landlords charge for rent, so do higher operational costs. Of the landlords set to raise rents this coming year, more than one-in-ten (16%) pay in excess of 13% of their rental income on property management.
Just under a third (30%) pay 5% of their rental income, while slightly less again (29%) pay between 9 and 12%.
The findings form part of Landbay’s latest survey which questions existing landlords on a variety of topics to determine their attitude and intentions. The survey uncovered the key factors facing landlords and their thoughts on upcoming regulation and the future of the buy-to-let market.
Landbay director of sales and distribution Rob Stanton commented: “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.
“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 buy-to-let market. At Landbay for example, we have just expanded our like-for-like remortgage range with new two-year fixed and tracker products – supported by new lower stress testing at just payrate.”
He added: “This change to affordability calculations is already proving popular and beneficial for both brokers and their clients.”
(Landbay surveyed its entire landlord database of more than 1,500 landlords.)
