Poll data by GetGround has found that, propelled by a nationwide deficit of available property to rent and the rising unaffordability of owner-occupier mortgage costs, soaring demand by tenants for rental homes is causing concern for landlords as they seek to maintain viable investments.
50% of respondents to GetGround’s latest survey of landlords operating throughout the UK say that they have experienced an increase in tenant demand for their properties in the last 12 months.
On account of this surging demand, over two thirds (69%) of landlords believe that over the past year the balance of power between tenants and landlords has ‘shifted in favour of landlords’. Asked if the lack of available rental housing threatens to allow disreputable landlords to do harm to the rental market, 81% of landlords agree it does.
Data from the research, which was conducted on behalf of GetGround in November 2022, found that:
- 57% of landlords say tenants are willing to pay higher rents to secure tenancies;
- 55% say tenants will accept higher bills for utilities;
- 69% say tenants have accepted unplanned rent increases.
Only 13% of landlords think tenants are expecting or demanding more from their landlords in relation to their rentals. Similarly, 75% of landlords believe that, in light of the current supply/demand disconnect, tenants are having to be ‘less fussy or demanding’ about their rental homes.
Moubin Faizullah Khan (pictured), CEO of GetGround, said: “With recent history as our guide, it’s easy to imagine how the private rental sector could be brought into disrepute by bad actors: disproportionately high rents, unexpected bill increases, unfairly terminated tenancies and so on. Landlords and tenants alike need the right protections and safeguards to ensure none of this poor behaviour is able to happen, particularly as high mortgage and energy costs continue to put even more pressure on landlords to find means to stay solvent.”
Ben Beadle, CEO of the NRLA, added: “GetGround’s snap poll data highlights a perfect storm that’s coming, combining the increased cost of living with rising rents. That rents continue to rise is due to the impact of a lack of supply and record demand in the private rented sector. This is very much a problem of the government’s own making: reducing the PRS as landlords vote with their feet because of swingeing taxation and divisive rhetoric is in no one’s interest.
“It’s time for the government to reverse this failed approach by reversing mortgage interest tax changes, abolishing the 3% stamp duty land tax surcharge, investing in social housing and unfreezing local housing allowance for renters. A failure to do so will only ensure the current misery being felt by all in the sector continues.”
