Study reveals why buy to let landlords want to put up rents
Government measures are among the top reasons for landlords in the UK planning to increase rents, according to new research.
Some 37% of landlords say that they may have to put up rents to account for higher taxes caused as a result of buy to let rule changes while 25% are looking to pass on costs due to high stamp duty paid when purchasing an additional property.
The survey from Property Partner also found that landlords have upped rent by an average of 21% in the past 18 months to compensate for the changes in the buy to let sector.
It adds that 38% of landlords would consider increasing rents to compensate for higher interest rates following the decision by the Bank of England to increase the base rate in August.
The survey also found that 38% of landlords are mindful to increase private sector rents due to increases in their mortgage payments.
‘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,’ said Mark Weedon, head of research at Property Partner.
Robin Foxhall, a buy to let investor, explained the thinking behind landlord plans. ‘I’ve invested in buy to let properties for a long time and always acted in the best interests of my tenants,’ he said.
‘The recent tax changes crackdown puts me off of pursuing new investments in buy to let and may well force me into a corner where increased costs lead to increased rents for tenants. I don’t want to put rents up, but sometimes external factors leave you with no choice,’ he added.