Landlords hold off rent rises to keep hold of tenants

More than half of landlords are choosing not to increase rents in a bid to retain existing tenants, according to a new report.

Data from the TDS Charitable Foundation reveals that half of landlords had kept rents unchanged over the previous 12 months, up from 39% in last year’s survey.

However, the foundation warns that tenants are not the only ones facing rising costs, with landlords also under pressure from increasing expenses.

Retaining existing tenants

The research found that a range of factors were influencing landlords’ decisions not to raise rents, with 47% citing the desire to retain existing tenants and 44% pointing to concerns about the cost-of-living pressures facing renters.

Dr Jennifer Harris, head of policy, research and social impact at The Dispute Service Group, who researched on behalf of the Foundation, said: “It is encouraging to see more landlords choosing to keep rents unchanged, particularly at a time when many tenants continue to face significant financial pressures.

“However, our research shows that decisions about rents are rarely straightforward. While retaining good tenants and recognising the financial challenges they face are important considerations for many landlords, they are facing pressures of their own, with rising running and maintenance costs continuing to influence decisions about rents.”

Landlords who increased rents likely to have larger portfolios

The data also reveals the most common reasons given for raising rents were higher running costs, increased property maintenance expenses and the wider cost-of-living crisis.

Landlords who had increased rents were more likely to have larger property portfolios, incomes of £100,000 or more, own at least one House in Multiple Occupation (HMO), or use a letting agent.

The report also looked at rent arrears, with just over a quarter (26%) of landlords reporting having at least one tenant in rent arrears, a slight decrease from 29% in the previous year’s survey.

When dealing with arrears, landlords most commonly reported engaging directly with tenants to discuss their options (42%) or providing information about their rights and available support services (39%).

More than one in five landlords (21%) said they had agreed a repayment plan with tenants, while 17% had offered a rent-free or reduced-rent period to provide some financial breathing space.