Nearly half of all landlords are planning to put the rent up ahead of the Renters’ Rights Bill becoming law as expected later this year.

Buy-to-let lender Landbay found that 44% of buy-to-let property owners want to raise rents before the bill is enacted.

Most likely

Landlords with portfolios of between four and 10 properties are most likely to increase their rent (32%), closely followed by those with between 16 and 30 properties (28%), Landbay says.

Properties in the South East are most likely to be affected, followed by those in the North West.

Rents will rise by 6% on average, which will add an additional £74 per month on to the average monthly figure.

Uncertainty

Landbay says the decision to increase rents reflects the potential cost implications of new regulation, and especially the continued uncertainty among landlords about the planned removal of Section 21 ‘no-fault’ evictions.

In a previous survey by Landbay, 75% of landlords expressed concerns about the removal of Section 21, and their ability to remove problem tenants.

By forcing the hand of landlords in this way, there is a real risk of worsening the cost-of-living crisis.”

Rob Stanton, Sales and Distribution Director at Landbay, says: “This sharp rise in rents in the short term shows the unintended consequence of this new regulation, as landlords look to act now and pre-emptively raise rents in fear of future cost implications or difficulties, and to protect their investments.

“By forcing the hand of landlords in this way, there is a real risk of worsening the cost-of-living crisis that so many private renters are currently facing.”

More on the Renters’ Rights Bill