Almost a third of private landlords with a buy-to-let mortgage face the prospect of significantly higher costs this year according to new research. 

Data compiled by research consultancy BVA-BDRC for the National Residential Landlords Association (NRLA) found that 63% of landlords have a buy-to-let mortgage on at least one property. Of this group, 29% plan to re-mortgage at least one property over the course of the next year. 

The Bank of England has forecast that by the end of the year, monthly repayments for buy-to-let landlords are expected to rise on average by around £175. It has warned that a fifth of landlords with such a mortgage will face increases of over £300. 

The NRLA argues this will exacerbate an already serious supply problem in the rental market. According to the Bank of England, the mismatch between the demand for, and supply of rented housing, is in part a consequence of higher borrowing costs. 

In a sign of the supply crisis facing tenants, the research found that 65% of landlords in England and Wales confirm that demand for private rented housing increased during the final quarter of 2022. This was up from 56% who reported increased demand during Q4 2021.