Survey shows landlords have increased rent by an average 21% in 18 months
Landlords in Britain have increased their rent by an average of 21 per cent during the last 18 months. According to a recent survey by Property Partner, landlords throughout the UK are increasing rent in order to compensate for tax and legislation changes within the buy-to-let sector.
The survey also found that 37 per cent of landlords are considering rising rents to recompense the higher taxes they now have to pay, in response to the changes. A quarter of the landlords surveyed said they are likely to increase the amount they charge in rent in order to pass on high stamp duty cost when buying additional buy-to-let property.
Another reason cited by landlords for rising rents is due to increases in their mortgage repayments, as result of the recent 0.5 per cent interest rate rise by the Bank of England this summer.
Mark Weedon, head of research at Property Partner, spoke of the rising cost of rent, commenting:
“The Government wants to protect renters and is increasingly recognising the crucial role of the rental sector within the wider housing market. It is ironic then that the Government’s own initiatives are forcing landlords to pass on costs to tenants, impacting those who choose to rent, and making it harder for those with ownership ambitions to save for a hefty deposit.”
The landlord survey comes in the wake of positive forecasts focused on the UK’s buy-to-let market.
In its recent trading update, the leading banking group Paragon forecasts that by the end of 2018 buy-to-let in Britain is likely to have increased by over 25 per cent compared to last year’s level. This summer, Paragon reported there had been a £71.2m buy-to-let increase at the end of the second quarter of 2018.
Townends Estate Agents are market leaders in all aspects of property sales and letting and management across London and the South East. If you would like to discuss your buy-to-let requirements and goals in London and the wider South-East vicinity, get in touch with our team of buy-to-let property experts today.