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Landlords have little alternative but to pass extra costs onto tenants

Private landlords are being forced to increase rents just to have a chance of meeting their mortgage obligations and other costs, new research reveals. 

With many landlords seeing their profits wiped out as a consequence of the chancellor George Osborne’s tax clampdown on buy-to-let, rent hikes are ‘inevitable’ as landlords aim to at least break even, according to leading experts. 

A fresh survey conducted by the Residential Landlords Association (RLA) shows that 84% landlords are likely to consider increasing rents following the chancellor's decision to withdraw the level of tax relief that they can claim. 


With many landlords likely to face the prospect of having their profits unjustly ‘wiped out’, the majority of landlords will have no option but to recoup their losses through higher rents, with tenants ultimately paying the price of the government's 'unfair tax-grab', according to the association. 

Landlords will see their tax relief cut from next April until it is removed altogether and replaced with a 20% credit against mortgage interest.

Alan Ward, chairman of the RLA, said: “Landlords do not want to increase rents unnecessarily but many will have to if they are stay in business as a result of these wholly unreasonable tax increases.

“It is unfortunately tenants who will end up paying the price either through higher rent bills or finding it more difficult to find somewhere suitable to live.

“We welcome the concern of many MPs and hope that they will be able to persuade the Government to change its mind.”

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    Rent hikes are only inevitable if the tenant is willing and able to pay the extra costs?


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