Almost half of landlords are set to increase their rents in 2016 in a bid to counteract tax changes and higher stamp duty - with almost one in five planning inflation-busting increases of more than three per cent.
A survey by flatshare website SpareRoom says some 38 per cent of landlords admit their proposed increases are to cover their own tax and duty outgoings.
Other reasons for rent increases include rents rising locally (23 per cent), expensive property repairs and maintenance (six per cent) and higher mortgage repayments (four per cent).
The average UK rent for a double room in shared accommodation rose by 8.6 per cent in the past year to £593 per month – up from £546 the previous year – according to the website.
In London, the average room rent has increased annually by 6.3 per cent to £721 per month, up from £678 a year ago.
“The roll out of Right to Rent legislation, removal of mortgage interest tax relief and changes to the wear and tear tax break from 2017, on top of stamp duty changes coming in 2019, means buy to let looks like far more of a risk than it did at the start of the year” says a spokesman for SpareRoom.