Jan

Majority of landlords will have to raise rents next year ‘by at least 10%’

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Almost two-thirds of landlords (62%) will be forced to raise rents by at least 10% in the next 12 months if market conditions don’t improve.

Research by Aldermore Bank found that despite this, landlords feel conflicted about passing on costs in an already difficult climate, with 64% worried their tenants might not be able to pay their rent because of the rising cost of living.

With record levels of inflation, growing costs and housing market volatility, nearly half (48%) have been unable to expand their property portfolio while 42% might even consider downsizing in 2023.

In a bid to maximise returns, the same number report that if they were to look at expanding their portfolio, they would purchase as a limited company.

Although nearly half (49%) feel it’s harder being a landlord now compared to this time last year, Aldermore’s survey reveals that 54% still feel optimistic about the future, with 66% believing that being a landlord remains a good way to make money.

Energy efficiency

In a bid to make their portfolios more sustainable and meet potential EPC regulation changes, nearly six out of 10 landlords (58%) say that the sustainability and energy efficiency of their property portfolio is a priority; 53% plan to carry out property improvements to address this in the next 12 months.

Jon Cooper (pictured), head of mortgages at Aldermore, believes despite significant challenges during the last year, there are healthy and positive opportunities for UK landlords.

He adds: “As we venture into 2023, landlords should work closely with their brokers to assess their portfolios and identify opportunities that lie ahead.”

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