In England, half of private landlords are now refraining from raising existing rents. As a study by the TDS Charitable Foundation organisation reveals, around 50 per cent of property owners kept rents unchanged over the past year. In the previous survey, this proportion stood at 40 per cent.
Priority on tenant retention and continuity
The study indicates that the desire to keep existing tenants in their properties is the decisive reason for maintaining current rent levels. For many owners, continuing established tenancies takes priority over exploiting theoretical increase potentials.
A change of tenant often results in financial losses and administrative burden for landlords. Potential void periods between tenancies, as well as the costs of re-letting and referencing future occupants, reduce overall yields. By maintaining stable rental terms, landlords provide incentives for tenants to remain in their homes.
Economic motives for stable rental terms
The rise from 40 to 50 per cent signals a noticeable shift in market dynamics. Landlords are weighing the risk of voids and re-letting costs against moderate rental growth. The reliability of proven tenants is viewed as a stabilising factor for the investment.
- —Avoidance of costly void periods during tenant turnover
- —Elimination of letting administrative efforts and credit checks for new tenants
- —Increased planning certainty through steady and punctual rent receipts
The findings of the TDS Charitable Foundation thus highlight a pragmatic approach adopted by many private landlords in England. Rather than pursuing short-term income optimisation through regular rent adjustments, numerous landlords are intentionally focusing on predictable revenue and intact, long-term tenancies.
