Latest data from a Buy-To-Let lender’s survey implies that the majority of BTL landlords will be raising their rents in the next twelve months.

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Around 85% of landlords who took part in the survey said they were going to raise rents with 36% planning to increase rents by up to 5%, a rise from the 27% in last year’s comparable survey.

The survey also found that 37% will be increasing rents between 6% and 10%,which is virtually the same as last year’s 38%; only 8% of respondents are planning to raise rents in double figures of between 11% to 19%.

Nearly half of those intending to raise rents – 42% - are landlords with portfolios of 4 to 10 properties and 28% have portfolios of 20 plus properties.

According to the survey 50% manage their properties themselves, 27% use lettings agents and 20% use management companies.

The usual suspects of higher interest rates and operational costs as well as regulatory charges are mostly responsible for the rent increases. 

Of those 16% of landlords who plan to increase rents they on average spend 13% of their rental income on property management, whilst 30% spend 5% of their rental income on management and 29% have outgoings of between 9% to 12% funded by rent.

Rob Stanton, sales and distribution director of the BTL lender, said: “Whereas before, rising rents would often reflect the increasing demand for good quality rental accommodation, today’s market now means landlords also have to factor in higher interest rates and operating costs too. With no alternative, many landlords have to consider increasing rent to cover their outgoings.

“As a large number of landlords look at their remortgage options, they can be encouraged by the innovation we have seen from lenders across the buy-to-let market.