More landlords are choosing not to increase rents, with concerns over tenant affordability and retention influencing their decisions.
New research from the TDS Charitable Foundation found that 50% of private landlords in England had frozen rents over the previous 12 months.
That compares with 39% in last year’s survey, representing an 11-percentage-point increase.
The findings challenge the perception that landlords are routinely pushing rents higher, although almost half have still imposed increases.
The nationally representative survey questioned more than 2,000 private landlords across England.
Tenant retention drives rent freezes
Keeping existing tenants was the main reason landlords gave for holding rents steady.
Among those who had not increased rents, 47% cited tenant retention. Meanwhile, 44% pointed to concerns about tenants’ living costs.
Landlords without mortgages or other property borrowing were less likely to increase rents.
The same applied to those owning a single rental property and landlords who had never used a letting agent.
However, 48% of respondents had raised rents at least once during the previous year.
Higher running costs, maintenance bills and wider inflationary pressures were the main reasons.
Landlords with larger portfolios were more likely to have increased rents.
The research also identified higher rates of rent increases among landlords earning £100,000 or more.
Those owning houses in multiple occupation (HMOs) or using letting agents were also more likely to have raised rents.
More than a quarter report rent arrears
The survey also examined how landlords respond when tenants fall behind with payments.
Some 26% reported having at least one tenant in rent arrears, down from 29% last year.
However, many landlords said they preferred to work with tenants rather than immediately pursue enforcement action.
Some 42% reported discussing payment difficulties directly with tenants.
Meanwhile, 39% provided information about tenants’ rights or available support services.
More than one in five landlords (21%) had agreed repayment plans.
A further 17% had offered rent-free or reduced-rent periods to help tenants manage financial difficulties.
Landlords face competing pressures
Dr Jennifer Harris, head of policy, research and social impact at The Dispute Service Group, said the findings reflected landlords’ concerns about tenant affordability.
“It is encouraging to see more landlords choosing to keep rents unchanged, particularly at a time when many tenants continue to face significant financial pressures.”
However, she warned that landlords were also dealing with rising costs.
“While retaining good tenants and recognising the financial challenges they face are important considerations for many landlords, they are facing pressures of their own, with rising running and maintenance costs continuing to influence decisions about rents.”
For letting agents, the findings highlight the importance of balancing rental returns with tenant retention.
They also suggest that landlords’ financial circumstances play a significant role in whether rents rise or remain unchanged.
