More than half of UK landlords to raise rents in next year

A growing number of buy-to-let investors plan to increase rents, in order to counter recent tax increases in the sector.

Many buy-to-let landlords also do not plan of expanding their portfolios, according to a new survey from the Residential Landlords Association.

Leaving

The investigation shows that almost one-third of people with landlord insurance are thinking of leaving the sector for good.

56% of respondents are looking to increase their rents during the next 12 month, in order to offset the impact of changes to mortgage interest tax relief.

If this occurs, families with young families are likely to be most affected, with 63% of landlords letting to tenants with at least one child. 58% of landlords said that tax rises will impact on their plans for further investment.

54% of landlords questioned said they do not have confidence in the future of the sector. 70% said that the felt there would be further changes that will affect landlords in the near future.

More than half of UK landlords to raise rents in next year

More than half of UK landlords to raise rents in next year

Relationship

86% of landlords said that they have a good relationship with their tenant, with 82% stating that their tenants pay rent on time.

The current average tenancy period is three years, which suggests that the majority of tenants are pleased and secure in their current agreement.

73% of landlords have not attempted to get rid of tenants from their property in the previous year. Of those that did, 70% did so due to rent arrears, with only 3% due to rent increases.

Reviews

Now, the RLA is calling on new Chancellor Philip Hammond to look at the tax changes implemented by George Osborne. The firm wants Hammond to back to nation’s landlords and encourage home development.

‘These results show how perverse recent tax changes have been. By implementing policy that will increase rents and choke off the supply of homes to rent, the Government is making it more difficult for tenants to save for a home of their own,’ said RLA policy director David Smith. [1]

‘We are calling on the Chancellor to use the Autumn Statement to hit the reset button,’ he added.[1]

[1] http://www.propertywire.com/news/europe/half-uk-landlords-set-raise-rents-due-tax-changes/

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