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Landlords face squeeze on costs as latest CPI figures set at five-year low

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assetgrove 1Unprecedentedly low inflation rates mean that landlords will have to improve value for money if they want to continue being profitable.

The latest consumer price index (CPI) figures have been pegged at a five-year low of 1.2 percent. This means that under the reformed social rent formula, from April 2015 landlords will only be able to increase rents by up to 2.2 percent. This is instead of the current formula, which is the retail price index (RPI), at 2.3 percent plus 0.5 percent.

Rents will therefore only be able to increase by up to 2.2 percent, compared with 2.8 percent under the old system. Rental income will likely be less than expected and landlords will be under pressure to find efficiencies. As repairs services bought in usually increase in line with RPI, there will be a growing gap between rental income and repair costs.

This is where we can help offer you a hassle-free service. We take care of managing daily tasks, such as inspections, lettings, maintenance and legal issues – and make sure we offer you great value for money when it comes to finding you the best repair options for your properties. The teams who use our fleet of maintenance vehicles constantly work to improve our clients’ portfolios!

Don’t get caught out – make sure you contact us for value for money and peace of mind.

For more information click on the link below:

Inside Housing

Neil Jennings

Neil is the Operations Director at Assetgrove Lettings, London's Leading Rent Guarantee Company, providing Landlords with no voids, property maintenance, fee-free property management and stress-free service.

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