Tenant tax push London rental prices p

Newnoel

Rightmove are reporting that asking rents in London have hit a record high. Not unsurprising, given the additional property taxes on renters and landlords over the past few years:
https://www.propertyinvestortoday.co.uk/breaking-news/2019/4/asking-rents-in-london-hit-record-high

lisyloo

We’ve already seen this a few days ago and also as you say unsurprising and therefore little discussion.

I’m on a fixed contract for another year.

Rich2808

Interesting data.


How come Rightmove claims the average monthly asking rent in London is £2,093 but Homelet states in its more recent release tha the average actual rent is only £1,613 - £480 less - or 23% lower?


Homelet bases its figures on actual rents achieved - Rightmove figures are based on asking rents by landlords.

So does this suggest Landlords on average are listing properties for nearly £500 a month or 23% more than tenants actually ultimately sign on the dotted line for?


Asking isn't the same as getting is it?



https://homelet.co.uk/homelet-rental-index#Methodology


https://homelet.co.uk/homelet-rental-index

lisyloo

I think I can answer that.
Many landlords do not put up prices for good reliable tenants who pay on time and look after the place.
The reliable income and lack of voids and people who don’t make a fuss are more valuable feature than getting market value to a lot of sensible landlords.

I’ve asked my landlord for improvements that he can’t be bothered with,
If he puts up the rent I’ll leave.
So he doesn’t fix things and I don’t leave.
The status quo is easier for all concerned who want a quiet life.

Hence landlords with long standing tenants are not always getting full market value.

£480 per month does seem a bit of a stretch though.

Thrugelmir

The AirBnb effect. Not all down to tax changes.

westernpromise

The ONS data agrees rents are continuing to rise
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/march2019

AG47

There is no tax on tenants, it’s all the LL

Jackmydad

AG47 wrote: »

There is no tax on tenants, it’s all the LL

They can call it whatever they like. But make rules and extra taxes for landlords, and it's going to get passed straight on to the tenants.
Most landlords try to be fair to decent tenants, but at the end of the day it's business.

AG47

Jackmydad wrote: »

They can call it whatever they like. But make rules and extra taxes for landlords, and it's going to get passed straight on to the tenants.
Most landlords try to be fair to decent tenants, but at the end of the day it's business.

There is an oversupply of Empty properties in London and it’s gettig worse.

Good tenants are hard to find, even not so good tenant who can afford the rents are hard to find these days.

The landlords are going to have to suck it up if they want to compete with all these new empty flats trying to get tenants.

PasturesNew

Agents will work figures to say what they want... their residential sales have fallen away, so they need to put a fresh spin on BTL, to try to make sales. if landlords believe rents have increased, they will be tempted back in.

GreatApe

lisyloo wrote: »

I think I can answer that.
Many landlords do not put up prices for good reliable tenants who pay on time and look after the place.
The reliable income and lack of voids and people who don’t make a fuss are more valuable feature than getting market value to a lot of sensible landlords.

I’ve asked my landlord for improvements that he can’t be bothered with,
If he puts up the rent I’ll leave.
So he doesn’t fix things and I don’t leave.
The status quo is easier for all concerned who want a quiet life.

Hence landlords with long standing tenants are not always getting full market value.

£480 per month does seem a bit of a stretch though.

Private landlords do not put the rent up
Social landlords and commercial landlords almost always do put the rents up

In real terms a private landlord is chagrining less and less to their tenant sometimes much less eg I have known landlords/tenants who have not moved rents for 15 years so the tenant is actually paying about 1/3rd less now than 15 years ago in real terms