A recent survey conducted by Zero Deposit among 1,042 landlords in England and Wales has shed light on the rental landscape for 2024. The findings indicate that only a quarter of landlords, constituting 24% of respondents, plan to increase rents in the coming year.
The majority of landlords, numbering 89%, possess between one and three properties in their buy-to-let portfolio at present, emphasizing a prevailing trend in the market.
Contrary to expectations, while 25% of landlords expressed an intention to raise rents, a significant portion, accounting for 68%, asserted their commitment to maintaining current rent levels. An additional 8% declared their intent to reduce rental charges.
CEO of Zero Deposit, Sam Reynolds, offered insights into this trend, noting, “The decision by landlords to refrain from hiking rents, despite various factors favouring such actions, indicates a sensitivity to their tenants’ financial limitations. This underscores the importance of positive landlord-tenant relationships, as witnessed in numerous cases.”
When questioned about their outlook on the rental market for the approaching year, the survey revealed diverse sentiments among landlords. While 21% expressed optimism, 24% maintained a pessimistic view. The majority, constituting 55%, remained neutral in their expectations.
Identifying the challenges anticipated in 2024, the research highlighted the foremost concerns of landlords. The cost associated with maintaining, repairing, and managing properties emerged as the most pressing issue, closely followed by concerns about legislative changes. Additionally, the survey underscored the significance of finding and retaining high-quality tenants, along with the impact of higher interest rates on buy-to-let mortgages.
The survey by Zero Deposit provides a comprehensive snapshot of landlord perspectives and intentions for the rental market in 2024, highlighting both their cautious approach to rent increases and the challenges they foresee in the year ahead.