Will Renting costs rise because of the increase in interest rates?

living_legend

Does anyone think that renting prices will rise because of the rise in interest rates?

One of my friends rents his house and was getting rent to just about cover his mortgage but he just renewed his mortgage last month and says his mortgage has went up to £600 from £450 and now hes raging hes got to pay the extra £150 per month.

Will landlords suffer or will it or even some be passed on to tennants?

What do yous think?

His tennants are due to renew their agreement in a few months and he doesnt know if an increase would drive them away but doesnt want to pay the £150 extra himself.

poppy10_2

living_legend wrote: »

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His tennants are due to renew their agreement in a few months and he doesnt know if an increase would drive them away but doesnt want to pay the £150 extra himself.

That's the key issue. the tenants don't care that the mortgage payments have gone up. If the LL tries to increase the rent by £150 (that's 33%) they will run a mile, and it will likely be difficult to find anyone to take their place. If he has a void period of even only one month, it will wipe out any potential gains he would have made by increasing the rent for at least 3 months.