Landlords adopting a pragmatic approach, in spite of inflation

The majority of landlords are sticking with their portfolios despite inflation fears, according to research from GetGround.

Only 29% of landlords are planning to downsize portfolios as inflation bites, with 24% actually planning to increase property investment activity.

The BLT company creation and management platform found inflation is a concern for nearly all landlords.

Yesterday, in its notes accompanying the raising of the base rate to 0.75%, the Bank of England stated that expects inflation to hit 8% in the second quarter of this year.

Of those surveyed, 83% are concerned about rising inflation negatively impacting their ability to invest profitably in UK rental property.

Over half (52%) of respondents expect this to increase the cost of property management by up to 50%.

Mortgage finance, energy bills and insurance premiums are identified by landlords as having the biggest areas within property management to be impacted by inflation.

Many landlords are adopting a pragmatic approach.

As well as the majority revealing they plan to stick with their portfolios, 69% said they felt a responsibility to help tenants cope with the cost of living crisis.

Freezing rents was the most popular solution for this cohort, with 37% of replies.

Despite the unprecedentedly high levels of inflation we’re expecting to see, our survey data strikingly affirms the enduring appeal of property investment,” said GetGround chief executive Moubin Failzullah.

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.”

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