Introduction : Understanding Landbay’s Latest Research
Landbay’s latest research reveals a significant trend among buy-to-let landlords: a majority are preparing to raise rents in the next 12 months. This decision is closely tied to rising interest rates and increased operational costs in the rental market.
Key Findings : Insights into Landlords’ Plans
According to Landbay’s survey, nearly 85% of landlords have indicated their intention to increase rents. Of these, 36% plan moderate increases of up to 5%, marking a rise from 27% reported in 2023. Additionally, 37% are considering hikes between 6% and 10%, mirroring previous survey results.
Demographic Insights : Profile of Landlords Intending to Increase Rents
The survey highlights that 42% of landlords planning rent hikes manage portfolios of 4-10 properties, with 28% managing 20 or more properties. Half of these landlords self-manage their properties, while 27% rely on estate agents and 20% on professional management companies.
Factors Influencing Rent Increases : Impact of Interest Rates and Operational Costs
Higher interest rates and operational expenses play crucial roles in landlords’ decisions to raise rents. Approximately 16% of landlords allocate over 13% of their rental income to property management, while 30% allocate 5%, and 29% allocate between 9% and 12%.
Implications and Future Outlook : Landbay’s Insights
Rob Stanton, Landbay’s sales and distribution director, notes that while rising rents historically reflected increased rental demand, today’s market dynamics necessitate adjustments due to elevated interest rates and operational overheads. Stanton emphasizes the importance of landlords exploring remortgage options to mitigate these challenges.
Conclusion : How Angel Properties Can Assist
For landlords navigating market changes and seeking optimal rental strategies, Angel Properties offers expert guidance. Visit Angel Properties to explore our comprehensive services, including property management, investment advice, and market insights.
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