Almost half of the British BTL rental companies (44%) plan to increase rent in response to the new invoice of the new tenant rights, according to a new survey by Landbay.
Of those who specifically increase rental prices because of the Tenant rights account, Landlords with portfolios of between four and 10 properties are most likely to rise rental prices (32%), closely followed by those with between 16 and 30 properties (28%).
Properties in the southeast are most likely affected, followed by those in the northwest.
Those who act before the invoice of the tenant rights will increase the rental prices on average by 6% – above the highest inflation that is already confronted by private tenants (3.6%, us). This adds an extra £ 74 per month to the average monthly rental figure.
According to the tenants’ proposal, landlords will be limited to only one rent increase per year for the market rate.
However, tenants have the right to challenge this on a first -class tribunal if they believe it exceeds market rates.
The decision to preventively increase the rental prices reflects not only the potential cost implications of new regulations, but also the constant uncertainty between landlords around the planned removal of section 21 without errors.
In an earlier survey by Landbay, 75% of the landlords expressed concern about the removal of section 21 and their ability to remove problem tenants.
In a commentary on the latest data of the data and distribution director Rob Stanton, the strong increase in rental prices in the short term demonstrated the unintended consequence of this new regulation, because landlords now wanted to act and preventively increased rental prices in fear of future cost or difficulties, and to protect their investments.
“By forcing the hand of landlords in this way, there is a real risk of deteriorating the crisis for the costs of living for which so many private tenants currently stand.
“Every good and reasonable landlord will agree with protecting the rights of tenants, but they also believe that the rights of the owner must also be protected. There is no doubt that we must balance the reform with support and guarantees for landlords to ensure that the rental market continues to play the important role in the VK housing mix.”