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Cotta
Posts: 3,667 Forumite
I've spoken to a few people renting in the private sector who have incurred a rental increase due to the new tax laws for private landlords?
Have many on here been affected and will this new tax law continue if it's impeding both parties so negatively?
Have many on here been affected and will this new tax law continue if it's impeding both parties so negatively?
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I've spoken to a few people renting in the private sector who have incurred a rental increase due to the new tax laws for private landlords?
Have many on here been affected and will this new tax law continue if it's impeding both parties so negatively?
How funny, I just finished a post about this very matter.
Yes I have written to my tenants over last 18 months specifically citing tax increases and why rents are going up. In the end as some try to argue, Govt spending is never free in the way Corbyn implies, the rises filter through to the market.
Before some virtue signaller gets on my case, just pause a moment, you may not be a Landlord but if you have a pension or ISA, the fund mangers that own the corporations you all want to tax more, do the dirty work of profit maximisation on your behalf and so if anything you're less moral than me, at least I deal with my own dirty work (property is my pension)0 -
I'm surprised many landlords are willing to try it right now with headlines about downward movement in rents.
For context, I'm living in London zone 2, and I've been in my current place for just over 18 months. Zone 2 not withstanding, it's a pretty undesirable location, tiny, has a few minor annoyances related to the layout. When I first viewed, I considered it a bargain for the price -- everywhere else I'd looked was either a sh*thole, at least £200 more, noticeably further out, or a combination of all three. I've been checking Rightmove lately, and there are now places listed for +/- £100, which would be huge improvements on my current place in either location, size, or "niceness". I'm probably not going to move just because, but if my rent increased I almost certainly would.0 -
itchyfeet123 wrote: »I'm surprised many landlords are willing to try it right now with headlines about downward movement in rents.
For context, I'm living in London zone 2, and I've been in my current place for just over 18 months. Zone 2 not withstanding, it's a pretty undesirable location, tiny, has a few minor annoyances related to the layout. When I first viewed, I considered it a bargain for the price -- everywhere else I'd looked was either a sh*thole, at least £200 more, noticeably further out, or a combination of all three. I've been checking Rightmove lately, and there are now places listed for +/- £100, which would be huge improvements on my current place in either location, size, or "niceness". I'm probably not going to move just because, but if my rent increased I almost certainly would.
I suppose from a LL's perspective where do they go? Their profits are going to be wiped out with the new tax rule.0 -
Many landlords seem to think they can put up rent. Funnily enough they didn't drop rents when interest rates dropped like a stone.0
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I suppose from a LL's perspective where do they go? Their profits are going to be wiped out with the new tax rule.
It's not as though most tenants have anywhere to go themselves. Amongst my friends, 50% of income on rent is pretty common. We've been hearing for a long time that that's just the way the market is. I wonder if the market will still be considered an amoral arbiter if rents drop meaningfully.
Besides, changes in the tax policy didn't come out of the blue. LL's have had plenty of time to run the numbers and see if it's still worth their while, and to get out if not.0 -
I'm in Nottingham. Nice area, good school catchment. Compared to about a year ago, prices to buy are up surprise surprise, rents are down considerably, and in a lot of cases they don't shift at those rental asking prices and have to be reduced. Yields are nonsense eg an ok detached is 200k to buy, virtually identical is rental 690 pcm, where is the sense in that for a landlord never mind any new taxes etc? I keep an eye on these as I like to see what state my local market is like and it is noticeable the lack of demand for rentals here.
Personally I don't buy this argument that nex taxes etc will force up rents: rents are not like prices to buy in that a) they are to a degree set by LHA, b) landlords that bought years ago (the majority) are not bothered anyway about a few % here or there since their yield % is so high and c) leading on there (in my area anyway) good supply of good rental properties so plenty to choose from. d) why would you risk losing a good tenant over the obsession with maintaining your yield %?0 -
Quite the contrary to be honest, rents in my part of the world (London Zone 2) are only heading downwards at the moment. If my landlord were to try raising rents I'd look elsewhere - the only thing stopping me at the moment is the hassle and the letting agency fees.
Remember there are a great deal of landlords who own outright or whose tax status won't be affected by the removal of mortgage interest relief. It's only a relatively small proportion of landlords - the treasury estimated 1/5 - who will be affected by the loss of their tax advantages.0 -
As some have alluded - it is the market that dictates prices, not Landlords. The market in London is headed down. How on earth would you increase prices?
If all these LLs could arbitrarily increase prices, why haven't they done so sooner?0 -
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Our landlord sent a surveyor round Monday to do a valuation for a remortgage and the surveyor said the market is falling everywhere and he advises people to make offers so think prices are bout to head south finally0
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