Why are landlords increasing rent? You can’t get away from not seeing something about the UK rental market. One matter that is causing a lot of controversy is the issue of rising rent and the a cost-of-living crisis. It is understandably worrisome for tenants, but are landlords really to blame? Reasons rents are going up and why landlords aren’t just profiting off a volatile rental market. Mortgage rates As interest rates go up, the mortgage market goes the same way. Just as residential mortgages get more expensive, so do buy-to-let mortgages. Landlords are facing the same issues as residential owners. While many people think that owning a rental is an easy way to rake in cash, it’s a business that only creates profit if the rental income covers the mortgage payment and there’s money left over. If mortgage payments are going up, then rising rents may reflect a landlord’s increase in costs. Changes to tax rules Without getting into the nitty gritty of UK tax law, over the last few years, there have been lots of changes introduced which impact landlords. This includes the amount they can claim in expenses and how much tax they pay. These changes have not only caused many landlords to sell their rental properties but may have also forced rent increases to meet financial obligations. Increased costs of repairs and maintenance Landlords often pay for the upkeep of their properties through their rental income, and the following issues could be affecting the rent they charge: • A general increase in the cost of labour and materials, fixtures and furnishings. • In the next few years, all rental properties must meet an increased level of energy efficiency, so many landlords will have to undertake major works, which again, could impact rent. Contact JC Property. Our lettings team is ready to help. 01724487297 info@jc-property.co.uk