The Residential Landlords Association says it completely rejects data produced by LSL Property Services showing rents in England and Wales up 1.4 per cent with landlords making “substantial returns” as a result.
The RLA claims the LSL figures are undermined by the more comprehensive and independent data from the Office for National Statistics showing rents between March 2013 and 2014 increasing just 1 per cent - whilst inflation as measured by RPI was 2.5 per cent over the same period.
RLA vice chair Chris Town says: “Whilst many have chosen to cherry pick the data on rents they want to use to suit their argument, the reality is that the most comprehensive, ONS data shows clearly that rents are increasing by much less than inflation. LSL’s figures fail to outline the considerable costs that landlords face in managing, maintaining and repairing properties. With interest rates likely to increase in the near future prospects for landlord finances remain uncertain.”
He goes on to emphasis that “landlords have to make some return to cover their costs and the question for those who spend so much time bashing landlords is what return they feel is reasonable for landlords to make. Only then can we have a sensible debate.”
The RLA claims that official figures show 79 per cent of all landlords earn less than a quarter of their income from letting properties with 21 per cent earning no income at all from it.
More recently, an analysis by the Daily Telegraph has warned also that a number of buy-to-let landlords “could see their cash flow turn negative as early as 2017 if interest rates rose to the levels hinted at by the Bank of England Governor, Mark Carney.”
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