Nine out of ten landlords expect rising inflation to have an impact on the cost of maintaining their property investments, new research reveals.
The polling by landlord portfolio platform GetGround finds that more than half (52%) of respondents expect the cost to jump between 25%-50% while 10% of them expect to see at least a 50% increase.
Mortgage finance (52%), energy bills (52%) and insurance premiums (44%) are cited as the three aspects of property investment most likely to be impacted by inflation.
With some experts forecasting inflation to rise above 8% for most of 2022, 83% of those surveyed were ‘concerned or very concerned’ that this will negatively impact their ability to continue to invest profitably in rental property.
This concern is prompting measures to mitigate rising costs, but it won’t drive a wholesale change in investment behaviour, according to the survey of several hundred UK landlords.
It found 29% intend to reduce their property purchases while inflation is high but that 24% plan to increase their portfolio.
Help tenants
The survey also revealed that 69% of landlords feel a responsibility to help their tenants mitigate the impact of the cost of living crisis.
Landlords believe they could help by temporarily freezing rents (37% of landlords support this), making energy efficiency upgrades (35%) and agreeing longer tenancy durations (34%).
Moubin Failzullah Khan (pictured), CEO of GetGround, says: “While, like the rest of us, property investors aren’t immune to the impact of rising inflation, our research shows most UK landlords don’t want to pass that burden onto tenants, if they can help it.
“Instead they want to be accommodating to their tenants in ways that are meaningful and long-term, proving that blending longer-term thinking with empathy actually makes better business sense.”
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