Two thirds of landlords plan to put up rents this year

Two in three landlords say they will be driven to raise rents by at least ten per cent this year as they brace themselves for shrinking profits and new regulations.

Landlords face a difficult year thanks to volatility in the housing market, higher mortgage rates and tenants struggling with the soaring cost of living. 

The average two-year fixed rate buy-to-let mortgage has risen from 2.9 to 6.28 per cent over the past year, according to data scrutineer Moneyfacts. 

As many as half feel it is harder being a landlord now compared to this time last year, according to the survey by Aldermore Bank. 

Millions would like to raise rents, but fear their tenants may not be able to pay.

Private rental prices have already risen substantially in recent months, up by 4 per cent in the 12 months to November according to official data from the Office for National Statistics.

Further pressure on landlords is on its way in the form of stricter energy efficiency rules.

The Government has proposed that all rental properties in England and Wales should have an Energy Performance Certificate (EPC) rating of C – the third most efficient rating – or higher by 2025. The minimum EPC rating is currently an E. 

Jon Cooper, head of mortgages at Aldermore, says: ‘The outlook for landlords this year seems tricky to predict, but there remain healthy and positive opportunities.’