There’s been a flurry of news articles in recent months about rising rents, but what is the real story behind the headlines? Here are three reasons why rents are going up.
- Mortgage rates
As with residential mortgages, rising interest rates have also made buy-to-let mortgages more expensive. If rents are rising, it may reflect a landlord’s increased mortgage costs.
- Changes to tax rules
Without getting into the nitty gritty of UK tax law, many changes have been introduced in the past few years that impact landlords. These changes have not only caused many landlords to sell their rental properties but may also have forced rent increases to meet financial obligations.
- Increased costs of repairs
Landlords often pay for the upkeep of their properties through their rental income, so the general increase in the cost of labour, materials, fixtures and furnishings could be affecting the rent they charge.
If you’re looking for a new home to rent or have a property you’d like to let out, contact us today.