Average rental yields on residential property have reached a 10-year high of 6.3%, and 82% of landlords describe tenant demand as strong, according to the Q2 2024 Landlord Trends report, conducted by Pegasus Insight on behalf of Foundation Home Loans. The incidence of rental increases has tripled in the last four years, with 74% of landlords raising rents in Q2 2024. This trend is driven by increasing portfolio management expenses and rising mortgage finance costs.

The Landlord Trends report also looked at a specific ‘hot topic’ within the private rental sector, and its potential impact on landlords, namely rent controls. Rent controls and legislative changes, such as the removal of Section 21 (no fault evictions), are high on the agenda for landlords. 55% said rent controls would greatly impact their commitment to renting, and one in three would consider selling their properties if controls were introduced. Interestingly, according to the report, landlords are less worried about other potential regulatory changes, such as outlawing bans on specific tenant types, compulsory licensing, or abolishing fixed-term contracts in favour of rolling contracts.