The majority of BTL landlords (nearly 85%) have confirmed their plans to raise rents in the coming 12 months, revealed the latest research from Landbay.
According to the lender’s most recent survey, more than a third (36%) of respondents said they plan to up rents by up to 5% — an increase from 27% in Landbay’s previous survey in 2023.
Meanwhile, 37% intend to increase rents between six and 10%, and 8% of landlords plan to boost rents by 11-19%.
Among those looking to raise rents, nearly half (42%) is made up of landlords with portfolios of four to 10 properties, followed by those with over 20 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.
One of the factors influencing what landlords charge for rent is the higher operational cost of a BTL — according to Landbay’s data, 16% of respondents pay in excess of 13% of their rental income on property management.
Meanwhile, just under a third pay 5% of their income, and 29% spend between nine and 12% of their rental income on property management.
Rob Stanton, sales and distribution director at Landbay (pictured above), said: “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 BTL market."
