by Daniel Jones
More than four in ten landlords in the UK are planning to make rent increases over the course of the next 12 months.
New research by house-share website SpareRoom.co.uk has found that 42 per cent of property owners with tenants in place intend to hike their monthly asking price, with 26 per cent said to be ready to impose increases of more than three per cent, reports the Economic Voice.
With so many people having to remain in rented accommodation because they cannot afford to buy for themselves, news of a surge in rent isn't likely to be welcomed. But landlords have realised that they are in a strong position and can demand more.
Of course, many tenants will get lucky by finding that their landlords are not planning to increase their rent in 2014. It was revealed that more than half (53 per cent) of the landlords surveyed will keep their rents the same this year, while five per cent will even lower them.
Matt Hutchinson, director of the website, said that rental matters are not always straightforward and other circumstances could determine whether a landlord wants to impose a rent rise.
"The good news is that the majority of landlords would rather keep good, reliable tenants than make a few hundred pounds extra profit a year. Landlords hiking rents up by more than 3% risk attracting tenants who could struggle to pay their rent on time or, even worse, risk void periods with no tenants and no rental income at all," he explained.
Landlords in the UK continue to be in a healthy position when it comes to income, with SpareRoom.co.uk's statistics showing that the average rent for a double room in shared homes with bills rose by 4.5 per cent in the final quarter of 2013 alone.
Such accommodation now costs £507 per month, up from £485 a year earlier, while in London this figure is £676 a month.
Published on: January 3, 2014