Landlords planning rent hikes ahead of changes in law

The government has put forward a proposed law to give more protections and improve standards for renters.

But some aspects of the renters’ rights bill have raised eyebrows among landlords - in particular limits on their ability to raise rent.

Under the proposed rules, landlords would only be able to raise rent once a year to match the market rate (the rent the property could get if newly listed).

As a result, some want to get ahead of possible changes in the law by putting up rents before they come into effect.

Nearly half of landlords planning rent rises

According to research by Landbay, 44% of buy-to-let landlords plan to raise rents in response to the renters’ rights bill. 

On average, that means an increase of 6%, or about £74 extra a month. 

Over the course of a year, that’s an extra £888 out of tenants’ pockets.

What’s more, nearly nine in 10 landlords (89%) said they’re planning to increase rents in the next 12 months - with around 40% expecting to raise them by at least 3%.

Landlords with mid-sized property portfolios (between four and 10 properties) were found to be most likely to raise rents because of the bill, closely followed by those with 16 to 30 homes.

The study also suggests that landlords in south-east England are most likely to increase rents, followed by those in the north-west.

Landlords also worried about end of no-fault evictions

The renters’ rights bill also includes an end to section 21 notices (no-fault evictions), so landlords can’t remove tenants without a valid reason.

But again, this is unpopular with some rental property owners.

In fact, 75% of landlords said they’re concerned about the removal of no-fault evictions, partly because it could affect their ability to remove ‘problem tenants’.

What can you do as a renter?

If you’re already struggling to keep up with your rent, speak to your landlord.

Although talking about money problems can be awkward, they can’t help you if they don’t know what’s going on.

It’s also important to know your rights to avoid being exploited.

You can find details on your rights and what help is available if you're having trouble paying on the government website.

We’re also here to help if you’re finding it hard to pay rent.

Use our benefits calculator to find out if you’re getting all the state support you might be eligible for.

We’ve also put together some useful money saving tips for people living in rented accommodation.

And don’t forget to use our budget calculator, so you can identify where possible savings can be made and free up cash to put towards vital expenses, such as rent.