Rent rises could contribute to more inflation

More than 70% of landlords responding to the latest Tony Alexander/Crockers Investor Insight survey say they will raise rents in the next six months. This is up from 65% last month.

Landlords are targeting an average rent increase of just over 5%. Proposed rent increases have dropped by about 1% since March when landlords were looking at a rise of more than 6%.

Independent economist Tony Alexander says the drop in proposed rent increases is not surprising considering many landlords have caught up after the pandemic rent freeze and renters’ incomes are stretched by the cost of living surge.

“Rent rises ultimately reflect market conditions and those conditions for many families are fraught.”