With mortgage borrowing rates soaring, buy-to-let landlords are facing growing pressures to increase rents, as demand from tenants continues to rise. According to Propertymark’s latest report, since February, the number of new tenants wanting to register on letting agents’ books has increased by 88%, from 78 to a new peak in September of 147.
Whilst the number of tenants that are home hunting keeps climbing, the number of available homes to rent remains broadly flat. On average, each member branch has reported having just 11 properties available since June this year. This figure means an average Propertymark letting agent would have just one property available for 13 new registrants in September, and that is over and above those already registered.
Nathan Emerson, Propertymark CEO, commented: “The pressure is on for private landlords, and the situation is not improving. Raising interest rates, increasing legislation and tax burdens mean that many landlords are faced with increasing their rent to cover their rising costs or to cut their losses and sell.
Landlords are being demonised recently, but in truth, they provide homes for those who can’t be served by social housing or afford to buy. A good landlord provides a good home, and more and more people are relying on them.”