Yet another news story about how landlords may raise rents

  • Filter
  • Time
  • Show
Clear All
new posts

    Yet another news story about how landlords may raise rents

    Newbie landlord so hoping someone can educate me

    I keep seeing stories in the news about how landlords will raise rents to offset extra costs of the latest legislative changes. What escapes me is how the supplier - (the LL) gets to set the price.

    Surely from standard economics models, for a given supply price is dictated by the demand. Ie Tenant A outbidding Tenant B to rent.

    Unless the extra costs lead to LL selling up and therefore reduced supply, I can't see how landlords will be able to raise rents. I'd love to be able to say "I want a minimum of 25% yield" and set rent accordingly but the market won't support it.

    Am I missing something or do all the press have it wrong?

    One such article in case you've missed them all!:

    I haven't read the article, but the supply of properties is short, so raising the rents is viable.
    If costs are going up over the board, then tenants will have to pay. Accomodation isn't something one can simply do without.
    Allow tenants to protect their own deposits. I want free money when they do it wrong


      Rents do go up, you can be a bit ahead of the market in the area and still let.
      But you can't be hundreds of pounds over just because you have a mortgage.

      Rents (in my view) are kept lower by clueless landlords (who base the rent on looking at rightmove and what they charged last time) and agents, who want to rent as quickly as possible.
      When you're working for 10% of the rent as a management fee, but get a lot when the tenancy is filled, you want to rent more than you want the extra 10% of £25 a month.

      But there's definitely upward movement where I am (West Midlands). Overall about 5% per year.
      Not sure that's going to compensate for the new tax restrictions for many people.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


        Originally posted by wouldbebuyer View Post
        Newbie landlord so hoping someone can educate me

        I keep seeing stories in the news about how landlords will raise rents to offset extra costs of the latest legislative changes. .......
        Aye.. right.... (double positive makes a negative...).Oh, please.....

        If the "well costs have gone up so prices must rise,," argument was even half true we would have seen the converse, significant rent drops when interest rates fell through the floor to 1/2%. Now, scratch heads, did they???

        This is capitalism: If landlords can bump prices up they will: Sometimes they find a story to hang it but, that's all it is, a story... (see fairy-tales...)
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


        Latest Activity


        • Reply to Rent a Room scheme
          by theartfullodger
          a) so the mobile home does not provide the (very) basic facilities that any tenant or judge would expect for a dwelling....
          b) Agree with jpk: Should it get to court (which is when the issue matters..) can;t see any judge deciding it's anything but a tenancy & you the landlord er... not at...
          24-01-2022, 16:26 PM
        • Rent a Room scheme
          by lgr001
          I have a mobile home next to my property. Do I qualify for the rent a room scheme if I rent out the mobile home but the occupant must use the shower and washing facilities in my house i.e. so that the mobile home is not a separate unit of accommodation? There is a provision by the council that it...
          24-01-2022, 14:25 PM
        • Reply to Tenant in situ
          by jpkeates
          It's almost impossible to reset the tenancy with a new agreement.
          The buyer will inherit the previous tenancy at the same point that they're able to let the property on the new agreement, so any new tenancy is going to be a follow on tenancy.
          So things that need to be done at the very start...
          24-01-2022, 14:57 PM
        • Tenant in situ
          by Bridge2020
          I’m looking at buying another property to rent out. The one I’m looking at has a tenant in situ. I have seen a copy of the AST and payments to the agents.
          Anyone have any experience of this please ?...
          20-01-2022, 08:29 AM
        • Reply to Rent a Room scheme
          by jpkeates
          You're really going to struggle with that not being a tenancy.
          If the tenant can lock the door to exclude you, and they could wash in a sink, that's likely to be a dwelling house.
          24-01-2022, 14:52 PM
        • Reply to Regulated Tenancy
          by AVJ113
          Yep, that's exactly what has happened....
          24-01-2022, 14:12 PM
        • Regulated Tenancy
          by AVJ113
          I have a basic understanding of regulated tenancy. I'm looking to buy a property with a tenant in situ on a regulated tenancy. In the real world, what are the pros and cons? Is there anyone with any experience?
          24-01-2022, 13:38 PM
        • Reply to Regulated Tenancy
          by DoricPixie
          How basic is your understanding?

          From your other thread you are seeing a broker about a BTL mortgage. I think you will struggle to secure a BTL mortgage against a property with a Regulated Tenancy in place....
          24-01-2022, 14:05 PM
        • Reply to Regulated Tenancy
          by jpucng62
          Unless it is REALLY cheap - don't!

          I inherited a property with a regulated tenant. The rent can only go up once every 2 years, by a specified amount, although more often if you improve the property, but it will always be cheap.

          Most tenants have been in a very long time and...
          24-01-2022, 13:58 PM
        • Reply to Tenant in situ
          by Interlaken
          Agree with above but if the property is in poor condition and the tenant elderly (or could be child of tenant who may be middle aged) then steer clear. I would definitely speak with the tenant.
          24-01-2022, 13:30 PM