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Rents increasing
Locally in Essex where we have rental properties we own and manage rents have, on average gone up by 10% and we have noticed fewer properties for rent.
It looks to us as if the renters right act is having the opposite effect intended. Less homes to chose from and higher rents?
Is it the same in your area?
Comments
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I’d say it’s far too early to asses the impact.
7 -
This is your opportunity to show what a nice landlord you are by not increasing your rents, nobody is forcing you to do so.
5 -
It's basic economics, the rental supply was already stretched, nothing is altering the demand, if anything the renters rights act will increase the demand for rental property.
Rents can only go one way , followed most likely by some form of rent controls, with the final model being a few large coorporate providers who then push the costs even higher.
This was not a labour bill this was started long before they got in.
My only regret is not exiting sooner.
1 -
Are your really surprised that a government policy is going to have the opposite effect to what is desired?
4 -
In a word, no.
Yes rents did go crazy for a while, but over the past few months they have started to come back down again to a more realistic level. In regard to available properties, there seem to be the same amount in this area - some are even listed at reduced prices than they were 3 months ago - and yes, they have sat advertised for three months!
It is always going to be a case of every area is different and every landlord and tenant are also different, so peoples experiences will also differ.
1 -
Landlords can determine their rents how they want, but they don't have to put them up because demand is high. Someone on a BTL mortgage needs to get about 130% of their mortgage payment in rent, so if the mortgage has gone up then it's a legitimate reason to put the rent up. Otherwise it's just profiteering IMO. I'm not sure you can blame a 4 day year old piece of legislation though.
3 -
"I'm not sure you can blame a 4 day year old piece of legislation though."
It's taken some time for the landlords to exit the market.
Many landlords up rents on change of tenants, this will take time to filter through but rents are guided by agents, often landlords then leave rents as they are unless anything material changes.
Ultimately this bill produced a reduced level of choice and competition.
"BTL mortgage needs to get about 130% of their mortgage payment in rent"
Many landlords saw their costs double or even triple recently.
2 -
According to the latest RightMove rental report, rents are pretty flat and availability is better than last year. Also no observed drop in rental properties available and no surge in sales listing for rental property.
2 -
Indeed, when we checked we are £200-£400 a month less than comparable advertised and let in the last two weeks.
That said we can do that as we have zero mortgages now across the portfolio.
However, what this has made us do (along with interest rates so not solely this legislation change) is not increase the size of the portfolio at this stage. A sort of holding position.
0 -
Do you have multiple rents, any mortgages etc is that also a reason for wanting to exit as well as this legislation?
0
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