The Deposit Protection Service says just over half of landlords increased rents in the past 12 months, marking a slight easing in upward pressure across the private rented sector.
Its latest Private Rented Sector Review, based on a survey of more than 1,000 landlords, found that 51% raised rents over the past year, down from 53% previously.
Looking ahead, 17% of landlords said they plan to increase rents within the next six months, a drop from 21% in the previous survey. However, 25% intend to raise rents within six to 18 months, up from 19%.
Around 24% said they plan to keep rents unchanged, broadly consistent with recent surveys where the proportion has hovered between a fifth and a quarter of respondents.
CAUTIOUS APPROACH
The data suggests a more cautious approach among landlords in the short term, with longer-term rent rises still on the horizon.
Matt Trevett (main picture, inset), Managing Director at The DPS, says: “Our data show that rental values in England, Wales and Scotland are stable at the moment.
“Landlords are less inclined to raise rents in the short term because their mortgage and operating costs have themselves stabilised.
“There has been an increase in the proportion of landlords looking to increase rents in the next 18 months.”
RENTERS’ RIGHTS ACT
He adds: “However, overall, the latest data suggest most landlords are adopting a ‘wait and see’ approach ahead of the implementation of the Renters’ Rights Act.”
The report also shows the average deposit value has risen to £1,195, up from £1,150 in September 2024. Based on standard deposit calculations, this points to an average monthly rent of around £1,035 – a 3.9% increase year-on-year.
Read the full report HERE.
