Independent property consultancy Allsop has released its latest issue of Rent Check, which tracks changes within the rental market in England and Wales.
The report highlights that annual rent rises over the past five years, up until March 2018, show close correlation to inflation. The survey included in the report has analysed rent rises across various regions and property types.
Approximately, 59% of landlords surveyed responded that they are letting at least one property for less than the average local market rate, in a bid to maintain occupancy levels.
Paul Winstanley, a Partner at Allsop, said: “Shattering the myth of rent rises greatly outstripping inflation, research has revealed rents have in fact risen moderately at a rate close to RPI over the last five years. Landlords have also been prepared to accept lower rents for good tenants. This, and past commitment by landlords to invest in the supply of buy-to-let property, have helped keep rent rises sustainable.
“Although most landlords are committed to the sector, and are not likely to sell up and leave anytime soon, Government policy is likely to make life difficult for them in the longer-term. This risks the supply of much needed housing, which can’t be met by the build to rent sector and homeownership alone.”
Mark Long, a Research Partner at BDRC, said: “Our unique Landlords Panel research programme feeds a range of statistics to the Rent Check report, and we continue to see a great deal of resilience being demonstrated by private landlords. Current PRS [private rental sector] policy conversations around longer mandatory tenancy agreements are causing uncertainty in the market, and it will be interesting to see, from a rental pricing perspective, how landlords and their representative bodies react during the consultancy period on these key proposals.”
Overall, the report has found that 85% of the surveyed landlords are currently making a profit on their investments. Despite the recent changes in the PRS causing uncertainty and resulting in news of a mass exodus of landlords, many have responded that they feel confident in remaining in the industry.
You can read the full Rent Check report here.