While two thirds of UK landlords allowed flexibility, 55 per cent plan to increase rents in the coming year, research from Market Financial Solutions has found.
The survey also found that 80 per cent would accept lower rents if it meant having a better or longer-term tenant.
Some 38 per cent of investors purchased another property during the stamp duty holiday, while 32 per cent tried to but missed out on the incentive. The market was considered to be “too chaotic” during the tax break, as cited by 60 per cent of respondents.
Buy-to-let investment is still lucrative, the survey suggested, as more than two thirds of landlords still consider the market to be an attractive investment option.
Paresh Raja (pictured), CEO of MFS, said: “It is positive to see that a healthy majority of UK landlords have allowed their tenants flexibility in making payments during this period. It is also telling that while rent increases invariably lie ahead, there is a clear appetite among landlords to secure reliable, long-term tenants – they are willing to drop rents in order to do so.
“Our research underlines that, despite some speculation to the contrary, the buy-to-let market has lasting appeal. Tax reforms and new regulations introduced over the past five years have affected landlords as the government has sought to gain better control over the private rental sector, but as an asset class, UK investors are evidently still gravitating towards buy-to-let properties in huge numbers.”
Last month it was revealed that landlords who offered full or partial rent reductions to tenants in financial difficulty during the pandemic lost thousands of pounds in earnings.
The same research found 46 per cent of landlords decreased their tenant’s monthly rent payments either by offering a full payment holiday or by reducing rent during the pandemic, according to Shawbrook Bank.