Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlords warn Budget costs will push up rents
Nearly two-thirds of landlords say they will put rents up to recover losses from tax and regulatory changes, according to research reported by Property118.
The findings, from research firm Pegasus Insight, come ahead of the Budget on 28 October, and suggest tenants could face tighter scrutiny too, with landlords reporting that the changes will affect whom they are prepared to let to.
What the research found
Nearly two-thirds of landlords surveyed intend to increase rents to recover losses they attribute to tax and regulatory changes. The research was carried out ahead of the Budget scheduled for 28 October.
The research also points to a second potential consequence for the rental market: tighter scrutiny of tenants. According to Pegasus Insight, landlords reported that the changes will affect whom they are prepared to let to. The source does not specify the nature or extent of that scrutiny, so letting agents and inventory clerks should treat this as an emerging trend rather than a confirmed shift in practice.
What it means for letting agents and inventory clerks
For letting agents, the prospect of widespread rent increases ahead of or following the Budget may prompt more conversations with landlords about pricing and renewals. Agents may also wish to note the reported intention among some landlords to be more selective about applicants, which could affect referencing workflows and lettings pipelines.
For inventory clerks, the reported findings do not point to any specific changes to inventory practice. However, if rent levels rise across portfolios, accurate, well-documented inventories and check-out reports remain an important part of evidencing property condition in the context of tenancy changes.
Context and caveats
The source item is limited in detail. It reports the topline findings — the proportion of landlords intending to raise rents, the involvement of Pegasus Insight, the timing ahead of the 28 October Budget, and the reported intention among landlords to affect whom they let to — but does not include the full methodology, sample size, or further breakdowns from the research. Readers should consult the original Property118 article for full details before drawing conclusions or making decisions based on these findings.
As ever with pre-Budget research, the actual measures announced on 28 October, and their effect on the private rented sector, will determine whether these landlord intentions translate into market-wide rent increases.
Source: Property118