Rising Inflation Hits Landlords

Research has found that a whopping nine out of ten landlords expect rising inflation to impact their investment property maintenance costs.

Landlord portfolio platform GetGround created a poll and the results showed that more than half (52%) of respondents expect the cost to jump between 25% – 50%. And 10% of those surveyed expect an increase of 50% or more.

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Landlords are not the only ones feeling the pinch, with tenants spending 42% of their income on rent and energy bills surging, belts are tightening throughout the country.

The three areas of property investment most likely to be impacted by inflation are: 

Inflation is being forecast to rise above 8% during much of 2022 according to some experts and 83% of those who took part in the poll, said they were ‘concerned or very concerned’ that this would have a negative impact on their ability to ‘continue to invest profitably in rental property.’

Will this cause a change in landlord behaviour?

The survey of several hundred UK landlords indicated that despite measures being created to offset these rising costs, prompted by landlord concern, there won’t be a widespread change in investment behaviour.

The survey also revealed that a huge number of landlords are looking for ways to help their tenants alleviate the rising living costs:

  • 69% of landlords said they felt responsibility to help
  • 37% are considering temporarily freezing rents 
  • 35% are looking to make energy efficiency upgrades
  • 34% are agreeing longer tenancy agreements 

CEO of GetGround, Moubin Failzullah Khan, said: 

While, like the rest of us, property investors aren’t immune to the impact of rising inflation, our research shows most UK landlords don’t want to pass that burden onto tenants, if they can help it.

Khan added that ‘longer-term thinking with empathy’ makes better business sense for landlords. How will you be accommodating your tenants?

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