Rents - what are landlords doing?

A survey of 500 landlords by research company BDRC unveils the latest info about landlords attitudes to their rents.

It indicates that rental rates are set broadly in line with the local market with 44% fixing their fees this way, with undercutting practiced by only one in seven private landlords.

The Rentindex shows that the average rent in the private rental sector in England and Wales is currently £597 up 0.42% over the month and 2.2% over the last 3 months.

When asked what other methods landlords use to choose the rates they charge, 21% said to cover their costs, 15% to slightly undercut the market rate, 8% leave it to the letting agent and 6% charge the amount that housing benefit/LHA will pay.

Almost two thirds (63%) of landlords don’t have any plans to increase the rents they charge their tenants between now and the end of 2009. Of those who do, the average rate rise is 5.2%. The survey probed how frequently private landlords approach their tenants for rental increases. There is little consistency in approach with 21% saying they haven’t actually implemented a rental increase yet, whilst 50% increase the rent regularly – at frequencies of between six months to two years.

Looking over the last 12 months, 19% have decreased their rent, 27% have
increased it and 49% have kept it static.

Are you confident on rents, are you looking to increase them post your views.

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