Renters see biggest annual rent rise since 2016

So, what the report says in section 1.32 is that over half (57%) had a buy-to-let mortgage and 5% had some other loan. Only about a third had no debt.

Section 1.29 says the median value of loans was £200,000.

The report says that most landlords have a small portfolio: Section 1.5 says that 85% of individual landlords owned between 1 and 4 properties. Figure 1.2 seems to show that most had 1-2 properties. 45% of landlords just own one property.

Section 1.6 says that landlords with BTL mortgages were more likely to have multiple properties (67% with a BTL own two or more properties). I can't see anything in there saying that older landlords have less debt (not impossible that I missed it). In fact, I can't see any link with age other than that a high proportion of landlords view their property as a pension. I think it's more likely that landlords used debt over time to increase the size of their portfolios.

Either way, the PRS is heavily mortgaged. Unless you are a Ltd company you cannot deduct the finance costs, so if interest rates go up fast then rents will also go up. Rent rises are a direct result of tax policy.

And whilst Scotland may presently be freezing it doesn't look like there's much of a rent freeze compared to England or Wales.

Well back in 1996 BTL mortgages were introduced and most if not all were Interest Only.
Now any Landlord building a portfolio of properties is not going to pay down IO BTL mortgaged properties they already own but save money for the 20/25% deposit they need for the next property purchase.
Yes most properties have increased in value since 1996 but Capital Gains tax will reduce any profit you make plus selling costs.
Many Landlords are now losing money with the huge Interest rate rises in the last 12 months

Reply to the comment left by DAMIEN RAFFERTY at 15/12/2022 - 17:49
That's correct. The English landlords survey says in section 1.18 that 58% of buy-to-let landlords view their properties as a pension. The government acted against landlords by preventing them from deducting their finance costs from their income. Landlords are now squeezed between HMRC and the finance industry. If they are now losing money in cash terms and weren't to raise rents in response they would be giving their pensions to their tenants.

Clearly, they aren't going to just sit there and let that happen. They will make a change and whatever change they make will result in rent rises. A disproportionate amount of the current rent increase comes from new-lets.