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More than a third of landlords raising rents in England have been motivated to match local properties on the market, as renters continue to be squeezed by a shortage of available homes, according to research.
About 60% of landlords increased the rent on at least one of their properties over the past year, a survey by the TDS Charitable Foundation found.
The primary reason for doing so was because of rising costs and fees, particularly maintenance and repairs, which 45% cited as their reasoning.
This was followed by 38% who said they increased costs to align with local market rents, as demand for properties in the area continued to keep prices elevated.
Some 36% said it was down to increases in their mortgage costs, particularly those with an interest-only, buy-to-let mortgage.
The survey of 2,000 private landlords in England, conducted by the charitable arm of the Tenancy Deposit Scheme (TDS), revealed the affordability challenges facing both landlords and tenants.
Of the landlords who chose not to increase rents on their properties, half said it was because of concerns about the cost of living for their tenants.
The report comes after new official data showed that average private rents across the UK increased by 8.6% in the year to July, the Office for National Statistics said on Wednesday.
Meanwhile, TDS’s report found there were more landlords buying properties than selling them over the past year, as owners looked to supplement their income with rent payments.
Nevertheless, the average number of properties bought and sold was relatively equal, indicating no significant improvement in the supply of rental homes on the market.
As the Government plans to reform the private rented sector, it needs urgently to focus on boosting the choice renters have when it comes to where to live— Dr Jennifer Harris, head of research at TDS
“Whilst today’s research points to more landlords purchasing rather than selling properties over the past year, demand for rental housing continues to outstrip supply,” said Dr Jennifer Harris, head of policy and research at TDS Group.
The average property receives 17 inquiries from hopeful tenants, according to the latest data from Rightmove.
The challenge of finding a suitable home has been “exacerbated by a mismatch between demand and supply, alongside rising rents”, the TDS said in its report.
“As the Government plans to reform the private rented sector, it needs urgently to focus on boosting the choice renters have when it comes to where to live,” Dr Harris added.
“Without this, tenants will struggle holding rogue and criminal landlords to account given the shortage of alternative housing to move to.”
