Yet another news story about how landlords may raise rents

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    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!:
    https://www.theguardian.com/money/20...t-higher-costs

    #2
    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

    Comment


      #3
      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).

      Comment


        #4
        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...

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