An increasing share of landlords are choosing not to increase rents, despite the introduction of the Renters’ Rights Act, opting instead to retain their tenants, aware of the cost-of-living pressures they face.
A survey of more than 2,000 private landlords in England, conducted by the TDS Charitable Foundation, found that half (50%) had not changed the rent they were charging during the last 12 months. That compares to four in ten (39%) last year.
Nearly half (47%) of those who hadn’t increased rents cited the need to retain tenants, while 44% cited concerns about the cost-of-living pressures facing tenants.
Landlords were less likely to have increased rents if they had no property debt or borrowing, owned only one rental property, or had never used a letting agent.
The survey also found that 48% of landlords had increased rents at least once over the previous 12 months, most commonly to cover higher running costs, increased property maintenance expenses and the wider cost-of-living crisis.
Such landlords were more likely to have larger property portfolios, incomes of £100,000 or more, own at least one House in Multiple Occupation (HMO), or use a letting agent.
Just over a quarter (26%) of landlords said they had at least one tenant in rent arrears, down slightly from 29% last year.
Landlords were most likely to engage directly with tenants to discuss their options for managing arrears (42%) or provide information about their rights and available support services (39%).
More than one in five landlords (21%) agreed a repayment plan with tenants and 17% had offered a rent-free or reduced-rent period to provide some financial breathing space.
Dr Jennifer Harris, head of policy, research and social impact at The Dispute Service Group, who carried out the research on behalf of the Foundation, said: “It is encouraging to see more landlords choosing to keep rents unchanged, particularly at a time when many tenants continue to face significant financial pressures.
“However, our research shows that decisions about rents are rarely straightforward. While retaining good tenants and recognising the financial challenges they face are important considerations for many landlords, they are facing pressures of their own, with rising running and maintenance costs continuing to influence decisions about rents.”
This article is taken from Landlord Today