Almost half of buy-to-let landlords (44%) plan to pre-emptively elevate rents in response to the brand new Renters’ Rights Invoice, survey information from Landbay can reveal.
Below the Renters’ Rights Invoice, landlords can be restricted to only one hire enhance per yr to the market price – the worth that might be achieved if the property was newly marketed to let.
Tenants nonetheless have the chance to problem this at a first-tier tribunal in the event that they consider it exceeds market price.
The invoice can even take away of Part 21 evictions.
Rob Stanton, gross sales and distribution director of Landbay, mentioned: “This sharp rise in rents within the brief time period exhibits the unintended consequence of this new regulation, as landlords look to behave now and pre-emptively elevate rents in concern of future price implications or difficulties, and to guard their investments.
“By forcing the hand of landlords on this manner, there’s a actual danger of worsening the cost-of-living disaster that so many personal renters are presently going through.
“Any good and cheap landlord will agree with defending the rights of tenants, however additionally they consider that the rights of the property proprietor needs to be protected too.
“There’s little question we have to steadiness reform with help and safeguards for landlords to make it possible for the rental market continues to play the vital position it does within the UK’s housing combine.
“Whereas we could not have the ability to affect authorities coverage or regulation, our position as a BTL lender is to make sure our product vary is aggressive and delivers precisely what landlords want – whether or not that’s for purchases or refinancing.”
Of those that are elevating rents particularly due to the Renters’ Rights Invoice, landlords with portfolios of between 4 and 10 properties are most certainly to extend rents (32%), intently adopted by these with between 16 and 30 properties (28%).
Properties within the South East are most certainly to be impacted, adopted by these within the North West.
