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Rent increase by 35%

2

Comments

  • A 35% increase sounds suspiciously to me like your LL is getting you to pay for S24 tax changes and his increased tax burden on his over leveraged portfolio.


    BF
  • G_M
    G_M Posts: 51,977
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    BLOW_FLY wrote: »
    A 35% increase sounds suspiciously to me like your LL is getting you to pay for S24 tax changes and his increased tax burden on his over leveraged portfolio.
    BF
    Perhaps. But so what?

    whether his mortgage has increased, hhis tax, or other costs does not really matter.

    What matters is the local market rate.

    If the tenant can find a similar local property at a lower rent, he should either use this to negotiate, or move to that other property.

    If the landlord can easily find another acceptable tenant willing to pay the new (35% higher) rent, then he's less likely to negotiate and may insist the current tenant pay the new rent or leave.

    That's how the system works. A debate about the rights/wrongs of market forces driving the rental market is perhaps valid, but not in this forum, and certainly not in this thread.
  • dimbo61
    dimbo61 Posts: 13,712
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    You could offer to meet the Landlord half way !
    Offer £120 a month more and see if they are happy to accept.
    They may come down from £240.
    Has the property been well maintained over the last 9 years ?
    Gas safe check every year ( if you have gas )
    Electrical safety inspection ? PAT testing and legionnaire check ?
    Deposit protected ?
    Is the property in a good area for renting with high demand.
    Would you consider buying it ? Can you afford to buy it ?
  • PField
    PField Posts: 89
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    BLOW_FLY wrote: »
    A 35% increase sounds suspiciously to me like your LL is getting you to pay for S24 tax changes and his increased tax burden on his over leveraged portfolio.


    BF

    This is a cost/tax to business and was always going to be past on to customers ( tenants). Might have seems like a good idea at the time, but it's only going to push up rents in the next few years further. Letting out my old flat might now start to make more sense than keeping it as a pied a terre.
  • PasturesNew
    PasturesNew Posts: 70,698
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    Unfortunately for you, the LL probably has been reading stuff online and chatting down the pub and to other local agents/landlords and feels he's undercharging you ... and, buoyed up by the realisation that he could trouser another £2880 per year, every year .... he now wants a bit of that.

    Welcome to the new world of Travellers With Houses. No longer feeling you can live in a house having rented it ... but feeling forever "moved on". Homeless in mind..... expensive each time.

    Forget your annual holidays from now on as you'll have to think about the £000s you need to save up "in case" a random letter arrives at the drop of a hat and you need the funds to move on.
  • caronoel
    caronoel Posts: 908
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    BLOW_FLY wrote: »
    A 35% increase sounds suspiciously to me like your LL is getting you to pay for S24 tax changes and his increased tax burden on his over leveraged portfolio.


    BF

    And we will likely see a lot of that over the next few years, as property investors will have no choice but to pass on increased costs to hapless tenants
  • caronoel wrote: »
    And we will likely see a lot of that over the next few years, as property investors will have no choice but to pass on increased costs to hapless tenants

    There is a limit to how far you can hike up rents.

    Property investors have many choices. Those choices include (1) people choosing not to invest in property, and (2) people selling investment properties to invest in other assets - such as stocks and shares.
  • PField
    PField Posts: 89
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    There is a limit to how far you can hike up rents.

    Property investors have many choices. Those choices include (1) people choosing not to invest in property, and (2) people selling investment properties to invest in other assets - such as stocks and shares.

    Supply and demand will see to rent increases, as less people invest in the sector. Plenty of people need to rent and will never be able to buy. Home ownership is going down, more people are renting.
  • There is a limit to how far you can hike up rents.

    Property investors have many choices. Those choices include (1) people choosing not to invest in property, and (2) people selling investment properties to invest in other assets - such as stocks and shares.

    In Ireland they have tried and reversed punitive taxes on property investors on a number of occassions

    Net result has been a dramatic rise in both rents and in tax evasion.

    The same thing will happen in the UK
  • csgohan4
    csgohan4 Posts: 10,587
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    OP what have you done with the rent saved from the years of undervalued rent value?
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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