Landlords Consider Rent Freeze for 2013

06 December 2012 Categories: News

Landlords Consider Rent Freeze for 2013

According to Rightmove’s Consumer Rental Forecast, more than six in ten landlords are planning to freeze the rents on their buy to let properties in 2013. The hope is that both rental arrears and void periods will be greatly reduced as a result. Some areas of the country have seen increases of more than one third over the last three years and it seems that tenants are being to feel the pressure of remaining in the private rental sector.

One in four landlords are still planning to increase their rents though, and one third of these are reporting the increase will be in excess of 5%. This suggests that the average rent will increase by just 2% over the course of the year which is lower than that seen in 2012.

Director of Rightmove, Miles Shipside, commented “The widening gap between tenant demand and rental property supply over the last few years has fuelled upwards pressure on rents. However, the majority of landlords now seem to be prepared to exercise constraint and are planning a ‘rent freeze’ for 2013. Lettings agents still report consistently high demand but more are warning landlords of the risks of squeezing tenants’ finances too hard.”

He then went on to say, “Landlords appear to be becoming increasingly aware of the need to strike a balance between long-term security and short-term gains. They need to weigh up whether it is better to ‘stick’ and hold rents for a model tenant or ‘twist’ and chance a rise and run the risk of ending up with a less desirable occupant, or even a void.”