YOU told us: Rising costs for landlords are forcing up rents

admin    Uncategorized     agents

Two sets of research reveal how many landlords are planning to increase their rents this year as costs rise.

A
LandlordZONE Twitter poll has found that 62% of landlords intend to increase their
rent in the next 12 months, while a
survey of Belvoir letting agents shows nearly three-quarters of its offices expected rental
increases throughout 2020.

Belvoir, which has 170
branches across the UK, found
72% of offices were predicting rent rises, with almost a quarter expecting
rents to be static and just 6% anticipating a drop in rents.

“The tenant
fee ban, combined with punitive tax changes and ever-changing costly regulatory
demands have resulted in landlords incurring considerable additional charges,”
says Belvoir CEO Dorian Gonsalves.

Belvoir found
that many fed-up landlords planned to quit the private rented sector. David
Devlin, owner of Belvoir Devizes, says the Tenant Fees Act puts all new and
renewing tenancy costs on landlords, who are understandably recouping those
costs through higher rents.

“Coupled with
punitive changes in taxes and ever-increasing regulatory demands, landlords are
being driven out of the sector, which is reducing supply,” says Devlin. “Add to
this steady and increasing demand and it will obviously have the inevitable
effect of rents rising.”

While tenants
are winning more rights, it is coming at a cost, adds Gonsalves: “Although the
government is trying to help tenants, reducing supply when demand is increasing
is resulting in rents rising in those areas where tenants’ wages are increasing
more than inflation.”

Tim Hassell,
founder of central London lettings agency Draker Lettings, says: “I think a rise in rents is well over-due in
central London. What people don’t realise is that rents here have been steadily
falling for landlords over the past decade as low interest rates have prompted
huge new investment in buy-to-let which has in turn created a glut of stock in
the market.

“But it’s only been in recent months that we’ve seen landlords
begin to exit the market as rents have slipped and costs increased, prompting a
15% drop in stock. This is beginning to push prices up.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – YOU told us: Rising costs for landlords are forcing up rents | LandlordZONE.

View Full Article: YOU told us: Rising costs for landlords are forcing up rents

If you enjoyed this article please consider sharing it!