Lee Grandin, of Landlord Mortgages, tells Lorna Bourke, of Citywire, why he believes landlords might be on the point of raising rents by as much as 20%:

According to Lee Grandin, managing director of Landlord Mortgages, the largest buy-to-let broker in the UK, many property investors who have been on two- and three-year fixed rates will be coming back to the market to remortgage.

‘This move is likely to force them to increase the rent they charge as the base rate has increased from 4% to 5.25% over this time period,’ Grandin says.

He believes landlords will pass on the increased mortgage interest costs to tenants and rents could increase by as much as 20% over the coming year. ‘The market is buoyant and in some areas there is real competition among consumers for good rental accommodation. This trend is likely to mean that landlords can pass on the increased cost of financing to their tenants,’ he says.

The estate agents, however, tend to disagree. They point out - very sensibly - that it's during times like these that landlords fear voids, and might actually end up preferring renewals or competing with each other to attracts tenants.

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