A significant proportion of landlords are choosing not to increase rents because of a combination of caution, rising costs, new regulations and the desire to retain reliable tenants.
The views come from property expert Jonathan Rolande (pictured), who said the number of landlords leaving rents unchanged may be surprising, but there are several reasons why they are taking a cautious approach.
“A third of landlords leaving rents alone is surprising but not completely unexpected,” he said. “Part of it is inertia. The Renters' Rights Act brought in a new process for raising rent, and plenty of landlords would rather just leave things alone rather than sit down and learn them. The possibility of an expensive error when serving forms is also a deterrent. While the current rent still covers the bills, why bother?”
The introduction of new procedures can create an additional administrative burden for landlords, particularly for those managing properties themselves. For some, the prospect of getting the process wrong may simply outweigh the potential benefit of a modest rent increase.
Tenant relationships are another important consideration. Landlords with reliable tenants may be reluctant to risk losing them for a relatively small increase in monthly income.
“There is fear too,” Mr Rolande added. “A landlord with a good tenant who pays on time and looks after the home does not want to lose them over £50 a month. The next tenant may know the new rules better than the landlord, and use them to challenge the rent or cause work. A reliable tenant is worth more than a small rise.”
