Landlords 'pass extra costs on to tenants'

News Category: Management

Landlords have been able to pass recent interest rate increases onto their tenants and so avoid the financial difficulties they could have caused, new research suggests.

Figures released by Assetz suggest that house price inflation rose to 11 per cent in June, putting pressure on people looking to purchase a property. As a result, the demand for rental property is likely to remain buoyant.

This means that landlords will be able to increase their rents to cover the increased cost of their borrowing.

Assetz managing director Stuart Law explained: "While costs will increase for buy-to-let investors, landlords are definitely looking to pass these onto their tenants, benefiting from the increased demand for rentals from people who are simply unable to afford a mortgage in the current climate, as well as those who are not yet looking to buy their own property."

Recently, Arla argued that buy-to-let investors were critical to the long-term health of the housing market asthey provided affordable housing to those unable to buy their own property.

Adrian Turner, chief executive of the organisation, added: "Without these investors, who have helped to save the Private Rented Sector by re-financing it, there would be little or no choice in housing."