According to a study carried out by GetGround, 90% of landlords believe rising inflation will impact their ability to maintain their rental property. More than half of the respondents said they expect to see the cost of property management rise by 25% to 50%. 10% of landlords expect costs to rise by more than 50%.
The property management and investment aspects most likely to be impacted by inflation were listed as follows:
- Mortgage finance and energy bills, said by 52% of respondents
- Insurance premiums, cited by 44% of respondents
- Property management services, listed by 40% of respondents
While costs are rising, it is possible to see landlords intending to remain in the market.
Some landlords will downsize, most will not
Only 29% of respondents said they intend to reduce their property investment while inflation is high. Of the 71% who said they would not downsize, 33% will continue as they are, and 24% intend to increase their property investment activity.
Moubin Failzullah Khan, CEO of GetGround, commented: “Despite the unprecedentedly high levels of inflation we’re expecting to see, our survey data strikingly affirms the enduring appeal of property investment. Long-term investment confidence is well-founded. Property only becomes a less attractive option if investors can find a better inflation-beating return from other assets. While rental demand remains high and house building figures stay low, landlords investing in the right areas will not only have a steady stream of tenants to rent to but will benefit from positive value growth.”
An interesting aspect of the study comes with 69% of landlords saying they are responsible for assisting tenants with the cost-of-living increase. If you believe everything you read or see in the media, you’d think landlords were a bloodthirsty lot, squeezing every last penny from tenants.
Landlords can assist tenants
The reality is very different. At Just Lets Peterborough, we find most landlords to be modest investors and people who have compassion for those living in their property. Life is easier for a landlord when a tenant is happy, so it makes good business sense to care for tenants. Of course, it is also the most humane thing to do too.
We are pleased to say we work closely with landlords and tenants. Creating a positive atmosphere and building a respectful relationship is crucial to making people’s lives better. If you have any questions about the Peterborough rental market, please get in touch.
According to the study, the most important actions landlords believe they can help tenants with include:
- Temporarily freezing rents, said by 37% of landlords
- Carrying out energy efficiency upgrades, said by 35% of landlords
- Agreeing to longer tenancy durations, cited by 34% of landlords
Faizullah Khan concluded by saying; “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. Instead, they want to be accommodating to their tenants in ways that are meaningful and long-term, proving that blending longer-term thinking with empathy actually makes better business sense.”
Just Lets – Here to Help
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.
The team at Just Lets Peterborough continue to operate remotely to ensure we can continue to serve you and your tenants throughout this covid period and beyond. Please contact us through our usual channels – email us at firstname.lastname@example.org or call us today on 01733 346255.