30-year high inflation to impact 9 in 10 UK landlords
The current inflation rate hits 6.2% - a 30-year high. Recently Russia’s invasion and ongoing crisis in Ukraine plus soaring energy prices have up-ended assumptions that rates would peak at 7.25%.
With some economy experts forecasting inflation to rise above 8% in April and stay there for most of 2022, a recent survey has discovered that more than 4 in 5 landlords (83%) are ‘concerned or very concerned’ that rising inflation will negatively impact their ability to continue to invest profitably in UK rental property.
However, whilst 98% of landlords are expecting rising inflation to have an impact on the cost of maintaining their property investments, less than 3 in 10 landlords (29%) intend to reduce their property investment activity while inflation is high. Indeed of the 71% that aren't looking to downsize, 24% are intending to increase their property investment activity.
Despite unprecedented inflation levels & an understanding that profitability will be impacted over the coming months, the survey data shows landlords are looking to support tenants and that there is an enduring appeal in property investment. With rental demand high, landlords are expected to continue to invest but with a keener eye on the best rental yields & property capital gains locations in the UK.