Most rents might go up in the following 12 months
The latest data by Market Financial Solutions (MFS) reveals 55% of the UK landlords planning to increase rental prices in the next year.
MFS surveyed 512 landlords and investors who own 2+ residential properties in the United Kingdom.
The data reveals 65% of the respondents who have property income allowed flexibility on rents during the pandemic. They did it due to the financial struggles of the tenants.
More than half (55%) of the respondents plan to set higher rents in the following 12 months. However, 80% of the landlords and investors say they would compromise lower rent for better, more long-term tenants. It means that more decent, long-term oriented renters may count on lower rents.
According to the research, 60% of the property investors in the UK think the Stamp Duty Tax Holiday resulted in a «too chaotic» property market.
During the tax relief (from July 2020 to September 2021), 38% of the investors managed to land a property purchase, but 32% did not succeed.
Around 68% of the landlords think of But-to-Let (BTL) as a favourable option for investment.
Paresh Raja at Market Financial Solutions says the pandemic negatively affected buyers, investors and companies. It is good that most landlords in the UK allowed flexibility in rental payments. Raja points out the clear trend among the landlords looking for more reliable renters and willing to lower the rents.
Raja says their study underlines the «lasting appeal» of the BTL market despite some concerns about the opposite. The UK investors still crave the BTL properties despite the previous tax reforms by the Government to gain more control over the private rental sector.