Landlords Adjust Rental Rates Amid Market Shifts and Rising Costs
A significant number of property owners are opting to raise rental rates to align with their peers, indicating a growing trend in rent hikes.
According to research conducted by 1newhomes, approximately 72% of landlords acknowledged that adjusting rents to match the local rental market played a pivotal role in their decision to increase rental prices, deeming it highly influential.
In parallel, 68% of landlords cited escalating expenses tied to legal obligations and compliance as a key factor driving their pricing decisions, while 62% pointed to rising maintenance costs as a crucial consideration.
The demand for rental properties remains robust, and our study suggests that most landlords envision a promising future in the rental market.
"Nevertheless, landlords have noted recent cost escalations, particularly due to higher interest rates."
It leads to a substantial portion choosing to raise rents as a means to cover their growing expenses.
Clearly, the upswing in interest rates and the overall cost of living is likely affecting some tenants. We encourage both renters and landlords to engage in open and constructive discussions regarding the financial strains imposed by the current economic climate.
Over 54% of landlords indicated that mortgage lender requirements, including financial stress testing and affordability standards, did not exert any influence on their decision-making. Similarly, 53% reported that increasing expenses related to letting agents did not factor into their considerations.