Warning for landlords considering increasing rentMake Text Bigger
Landlords are being urged to stop putting additional pressure on tenants who may already be struggling to pay their rent by increasing rents further.
As a result of a surcharge on stamp duty for second property owners, a third of buy to let landlords intend to pass on increased costs to their tenants.
However, hikes in rental values could push up the number of rental sector tenant evictions.
There were 10,732 repossessions of rented homes by bailiffs between January and March 2016, up from 10,253 in the final three months of 2015.
Official figures from the Ministry of Justice show that 42,728 households in rented accommodation were forcibly removed in 2015 which is a record high.
“Landlords need to be careful when increasing rents, particularly if they are aware that their tenants are struggling to begin with. Increasing rents regardless of this could lead to tenants defaulting on payments which is an issue for landlords,” said a spokesperson for Property 118’s landlord insurance provider Discount Insurance.
A quarter of landlords have served an eviction notice to tenants over the last 12 months and 5% have pursued an eviction through courts, according to figures from PropertyLetByUs.
Almost half of landlords have also experienced rent arrears over the last 12 months.
“Landlords can protect themselves against such rent arrears and defaults with Rent Guarantee and Legal Expenses insurance and carrying out appropriate referencing checks,” added the spokesperson.
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