Landlords Urged To Hold Steady When It Comes To Rental Increases

29 June 2012 Categories: News

Landlords Urged To Hold Steady When It Comes To Rental Increases

The chief executive of Upad, one of the UK’s leading online letting portals, has urged both landlords and buy to let property investors not to increase rents substantially over the next few months for fear of losing reliable tenants. Mr James Davies warned landlords to “look at the bigger picture” before putting their rents up after figures showed an average 0.4% rise in rents during the month of May.

He commented that although there does seem to be renewed interest in the private rental sector following the end of the stamp duty holiday, there is still the potential to experience long void periods if rents are set to high. He also warned that significant rent increases could lead to late or missed payments by tenants, thus effectively wiping out any gains made by imposing higher rents.

Strangely though, recent research by the National Landlords Association showed that nearly 65% of the landlords surveyed had refrained from increasing their rents during the previous 12 months, with the main reason being the want to retain reliable tenants. And so it may be that Mr James Davies is simply reiterating what the majority of landlords already know.