Over half of landlords have revealed that they will not increase rent prices over this year, according to a survey by the Residential Landlords Association (RLA).
Members of the RLA were questioned on their plans for the year. More than half of respondents (56.5%) reported that they would definitely not request more rent from tenants this year, while a further 11.8% have not yet decided.
Policy Director at the RLA, Richard Jones, states that the results dispel the idea that landlords are eager to constantly increase rents.
He explains: “Whilst it is true that rents in London as a result of serious supply problems remain stubbornly high, policymakers should avoid thinking that what happens in the capital reflects the rest of the country.
“At a time when tenants are facing squeezes on their costs of living, especially falling wages, landlords are responding by accepting real terms cuts to rents.”1
The economic difficulty felt in the UK in recent years has made it harder for young people to get onto the property ladder, forcing many to turn to the rental sector. It is believed that landlords are cashing in on this trend by pushing rents up.
However, between 2008/09 to 2011/12, rent prices in the private sector rose by just over 7%. Over the same period, inflation was 12.5% in the UK, indicating that landlords have not taken advantage of renters.
In the social rental sector, rents grew by almost 17% in the same timeframe.
Of the landlords surveyed, 31.7% said that they are planning to increase rents this year.