Most buy-to-let landlords plan to raise rents in the next 12 months after being hammered by higher interest rates and operating costs.

Landbay’s latest landlord survey reveals that while nearly 85% admitted they are planning a price hike, more than a third (36%) will raise rents by up to 5%, an increase from 27% in 2023.

Another 37% intend to increase rents between 6% and 10%, which closely mirrors the mortgage platform’s previous survey (38%), and fewer than one in ten landlords (8%) plan to raise rents between 11% and 19%.

Portfolio

Among those looking to put up prices, nearly half (42%) are those with portfolios of four to 10 properties, followed by those with 20-plus properties (28%). Exactly half self-manage their properties or portfolio, while 27% rely on an estate agent and 20% on a professional management company.

While higher interest rates continue to play a factor in what landlords charge for rent, so do higher operational costs, according to Landbay.

Of the landlords set to raise rents in the coming year, more than one in ten (16%) pay at least 13% of their rental income on property management, just under a third (30%) pay 5% of their rental income, while 29% pay between 9% and 12%.

Rob Stanton, sales and distribution director, says: “Whereas before, rising rents would often reflect the increasing demand for good quality rental accommodation, today’s market now means landlords also have to factor in higher interest rates and operating costs too. With no alternative, many landlords have to consider increasing rent to cover their outgoings.”

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