Two thirds of landlords plan to put up rents this year
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Two-thirds of landlords plan to raise rents this year as they brace for falling profits and new regulations
- Half feel it is more difficult to be a landlord now than at this time last year
- Landlords have to deal with stricter rules for energy efficiency
- Private rents increased by 4% in the 12 months to November
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Two in three landlords say they will be forced to raise rents by at least 10 percent this year as they brace for falling profits and new regulations.
Landlords are facing a difficult year due to volatility in the housing market, higher mortgage rates and tenants struggling with the rising cost of living.
According to data researcher Moneyfacts, the average two-year fixed-rate mortgage increased from 2.9 percent to 6.28 percent over the past year.
Private rents increased by 4% in the 12 months to November
According to the Aldermore Bank survey, as many as half feel it is more difficult to be a landlord now than at this time last year.
Millions of people want to raise rents, but fear that their tenants will not be able to afford it.
According to official data from the Office for National Statistics, private rents have already risen significantly in recent months, rising by 4 percent in the 12 months to November.
There will be even more pressure on landlords in the form of stricter energy efficiency rules.
The government has proposed that all rental properties in England and Wales should have an energy performance certificate (EPC) of C – the third most efficient rating – or higher by 2025. The minimum EPC rating is currently an E.
Jon Cooper, Head of Mortgages at Aldermore, said: ‘The outlook for landlords this year seems difficult to predict, but healthy and positive opportunities remain.’
