Insane rent increase.

Le Clandestin Brun said:
Lol at the people blaming increasing house prices, and seemingly also all of lifes problems, on landlords :cry:

This thread is hopeless
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No, landlords aren't the problem. The problem is a property market which has been rigged for decades to ensure prices keep increasing faster than wages. Landlords are a symptom of the problem, because it's been an absolute no-brainer for anyone who has money, to buy property and become a landlord, because the deck is stacked so hard in your favour, it's been 99% impossible to come out of it with anything other than huge gains.

I think a lot of smug landlords trying to put the squeeze on rents right now are going to get a rude awakening when the cost of living really bites this year....with defaults and demand dropping.

At some point, you can't just keep funneling money from the poor to the wealthy.....people will snap. This next winter when people can't afford to heat their homes may be the breaking point.
 
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There is risk for landlords but my problem really is that it is still quite attractive. Obviously too attractive because despite brexit and lots of people leaving the country we have even higher prices. The housing supply is being eaten up by landlords. It creates increased competition in the housing market and pushes up prices.

I don't mind someone owning a few homes but it's the landlords owning 100s of them.

The more you own the more tax you should pay and if not already you should have to be a uk resident.

But I also think you have to be realistic and do what is best for yourself now. It ain't changing unless labour get in and even then it might not happen over night. You have to move somewhere cheaper.

I guess I am "lucky" living in burnley as my house is worth 55k yet there is a train to Manchester and busses and a motorway which takes about an hour or so and you can just about commute. Yes it is a bit grim but I'm on the property ladder at least. I plan to do it up.

Consider moving north.
 
Eurofighter said:
The housing supply is being eaten up by landlords. It creates increased competition in the housing market and pushes up prices.

I don't mind someone owning a few homes but it's the landlords owning 100s of them.
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Around 5 million private rentals are owned by 2.6 million landlords. The one-property landlords are just as much of the problem.

(Total uk housing stock around 25 million properties)
 
cheesyboy said:
Around 5 million private rentals are owned by 2.6 million landlords. The one-property landlords are just as much of the problem.

(Total uk housing stock around 25 million properties)
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It was around 4.4m in 2021 but until we get this year’s we don’t know the actual ownership at the moment. A recent survey of landlords showed 1/4 were selling at least one property so it’s going to fall a lot. As mentioned before it’s really not favourable to be a landlord at the moment and people have or are moving out of the sector.
 
Eurofighter said:
It ain't changing unless labour get in
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Labour started this nonsense.
delta0 said:
It was around 4.4m in 2021 but until we get this year’s we don’t know the actual ownership at the moment. A recent survey of landlords showed 1/4 were selling at least one property so it’s going to fall a lot. As mentioned before it’s really not favourable to be a landlord at the moment and people have or are moving out of the sector.
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Ah OK. So single-property landlords are an even bigger share of the total.
 
cheesyboy said:
But when you fix your own property, your customer is yourself. You're not providing a service or a good. That's why it's not a real job any more than when I mow my lawn.
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So if I rent out machinery to builders, I own the machines, so that's not a real job/business?

The customer is still the person renting the thing I rent out. Any business has to do advertising, quotes, accounts, that they don't get paid for directly by the customer, but this is all still "work" that needs to be done to support any business.

Or is any business that does work in people's gardens also not a job - that would be great as they can all stop paying income tax.
 
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Bar said:
Another way to look at it is that having a roof over your head is a basic need along with food and water. When you have more than one roof you are denying someone else the ability to have it. Good landlords are needed, however costs are increasing and there are some really bad landlords out there. I might be jaded by my own experience - recently moved out of a 5 bed property after 10 years with a young family. Landlord never decorated, did the bare minimum she could get away with and didnt comply with laws on renting. She is now expecting me to put the property back to the original condition it was when I moved in and is looking to charge me over £3k.
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She can't charge you 3k, the most she could take is your deposit and that should be held via a deposit scheme so can't just be withheld.

Wear and tear is expected as part of renting, so you can dispute any claim she makes against it. If she hasn't put your deposit into a verified deposit scheme then she is in trouble

https://www.gov.uk/tenancy-deposit-protection/if-your-landlord-doesnt-protect-your-deposit
 
I haven't put rent up for almost 5yr for my current tenant. They pay £500 for their room and although I am a live in landlord I am only home two nights a week so they have a free house 5 out 7 days with only me using my room for two nights. Best friend now so much easier to deal with but with the adjust to the following going up by £300 a month
  • Gas
  • Electric
  • Water
  • Council Tax
  • Mortgage
  • Internet & Landline
  • Home & Contents Insurance
Then I am awaiting to see if I can absorb all that additional at end of April or if I have to increase rent by £50 to help towards that increase (they don't have any additional bills for the home at all) so I feel that is reasonable. With those increased costs I feel it theoretically would be fair to increase the cost by £150 as that is half of the increased cost shared by their usage and mine even without considering that I am only in 2 out 7 days a week and that he has his boys Friday to Sunday every week which over doubles our Electric use to our normal usage as well.

I am not in for a huge profit, they can't afford to get a mortgage but they contribute about 35% of the total bills cost per month for having a home and I pay the other 65% as the owner.
 
@willhub have you considered going for new jobs/new roles or retraining to increase income?

I note also that I may have seen you post about Oled tvs etc, have you tried to curb your spending as far down as possible?

Unfortunately cost of living just now is going mental (particularly gas/electric) so need to reduce costs/increase income to manage to stay afloat.
 
andybird123 said:
So if I rent out machinery to builders, I own the machines, so that's not a real job/business?

The customer is still the person renting the thing I rent out. Any business has to do advertising, quotes, accounts, that they don't get paid for directly by the customer, but this is all still "work" that needs to be done to support any business.

Or is any business that does work in people's gardens also not a job - that would be great as they can all stop paying income tax.
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A business renting out machinery is providing a service. You can hire an item for a task, which is cheaper than buying it.

The hiring company buying the asset doesnt shrink the market like landlords holding property does. It actually creates something rather than taking it away.

A landlord doesn't create a service, they simply take something out of society and use it to forcibly extract cash from people who actually work. Buying a btl off the shelf doesn't see another property appear to refill the shelf.

The machinery depreciates. Housing doesn't.

Ultimately, landlording creates no product, so is not a job, and cannot be compared even with hiring companies.

Comparing to a gardener is laughable. A gardener provides labour in exchange for cash. A landlord fixing his own garden isn't a job.
 
But you are assuming everyone has £50k for a deposit, what if you dont but you need somewhere to live? And in your ideal world there are no places to rent
 
I am browsing for a room in London and its £750-800 for a 'decent sized room in an ok area'. So sad. :(

I am back at the family home at the moment and saving more than I have ever done in my life. Realising why people do it.
 
Curlyriff said:
I haven't put rent up for almost 5yr for my current tenant. They pay £500 for their room and although I am a live in landlord I am only home two nights a week so they have a free house 5 out 7 days with only me using my room for two nights. Best friend now so much easier to deal with but with the adjust to the following going up by £300 a month
  • Gas
  • Electric
  • Water
  • Council Tax
  • Mortgage
  • Internet & Landline
  • Home & Contents Insurance
Then I am awaiting to see if I can absorb all that additional at end of April or if I have to increase rent by £50 to help towards that increase (they don't have any additional bills for the home at all) so I feel that is reasonable. With those increased costs I feel it theoretically would be fair to increase the cost by £150 as that is half of the increased cost shared by their usage and mine even without considering that I am only in 2 out 7 days a week and that he has his boys Friday to Sunday every week which over doubles our Electric use to our normal usage as well.

I am not in for a huge profit, they can't afford to get a mortgage but they contribute about 35% of the total bills cost per month for having a home and I pay the other 65% as the owner.
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You are far too nice.

Far far too nice.
 
Labour started it by setting housing benefit at effectively unlimited levels so rents rose ,that combined with low rates and lose lending rules for btl resulted in the btl gravy train. House price inflation has made landlords not want to sell and home buyers unable to buy.

It is a mess they have tried to fix it by restricting housing benefit and taxing landlords more, but that has put a lot of rents and prices up.
Probably increased the number of slum landlords,

If you can access capital, property development is a low skilled gravy train for amateurs.

This whole idea of making money from property has got to stop, homes are for people to live in.
 
Simon said:
But you are assuming everyone has £50k for a deposit, what if you dont but you need somewhere to live? And in your ideal world there are no places to rent
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Right, so the 50k deposit, add on stamp duty, legal fees, furnishings and it starts to mount up. Sellers have to pay agent fees as well, buying and selling a home is a very expensive business.

Prices are way too high for the economy to function long term. The investment in property needs to go towards productive enterprises.
In fact the way the measure economic growth is flawed, imputed rents being a major part of it. According to economics a single old person in a massive house contributes to economic growth.

Not sure where we go from here without huge pay rises for everyone or insolvencies and repossessions, both of which will not be allowed to happen.
 
cheesyboy said:
A business renting out machinery is providing a service. You can hire an item for a task, which is cheaper than buying it.

The hiring company buying the asset doesnt shrink the market like landlords holding property does. It actually creates something rather than taking it away.

A landlord doesn't create a service, they simply take something out of society and use it to forcibly extract cash from people who actually work. Buying a btl off the shelf doesn't see another property appear to refill the shelf.

The machinery depreciates. Housing doesn't.

Ultimately, landlording creates no product, so is not a job, and cannot be compared even with hiring companies.

Comparing to a gardener is laughable. A gardener provides labour in exchange for cash. A landlord fixing his own garden isn't a job.
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I only buy properties that are unmortgageble, I fix them up and either sell them, or in the past I've rented them out, I've taken something that is not part of the property market and fixed it so that it can be, the house was empty and out of use as a residential property, I've added several houses back in to the market.

In most European countries, renting is the norm rather than ownership, house prices and rents are cheaper in Europe, there are problems with the UK property market but its isn't "landlords" that are the problem, they fulfil a service that some people need, making owning a 2nd property illegal wouldn't fix any of the problems, it would make it so that a big chunk of the population had no where to live.

I set up a business, the business buys something, fixes it, maintains it, and rents it out for money. Without houses for rent, some people would have no where to live, they create a product that is in need. If I do work for that business, I receive money for that work. Some LL's outsource a lot of that work and receive less payment themselves as a result.
 
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Slam62 said:
Right, so the 50k deposit, add on stamp duty, legal fees, furnishings and it starts to mount up. Sellers have to pay agent fees as well, buying and selling a home is a very expensive business.

Prices are way too high for the economy to function long term. The investment in property needs to go towards productive enterprises.
In fact the way the measure economic growth is flawed, imputed rents being a major part of it. According to economics a single old person in a massive house contributes to economic growth.

Not sure where we go from here without huge pay rises for everyone or insolvencies and repossessions, both of which will not be allowed to happen.
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Absolutely, we've got ourselves into a trap.
I still think there's room to prop up the market with pass down mortgages.

Maybe as more people start living with parents the natural demand for houses will shrink and prices will stabilise.

Doesn't help when affordability criteria is mentioned in regards to loosening.
Personally I think that's a bad idea!
 
Simon said:
But you are assuming everyone has £50k for a deposit, what if you dont but you need somewhere to live? And in your ideal world there are no places to rent
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I'm not suggesting no rental properties. But I would suggest that cutting down heavily on landlording should go hand in hand with other regulation around providing additional social housing, more house building generally, rent controlled accommodation for the areas that simply do need rentals, and that could be provided by private enterprise (for students etc)

And, additionally, we should work to get to a stable housing market where deposits of £50k are not needed. I bought my first house in 2006 for a sub-£10k deposit, and my current house in 2012 for £30k (and it's 50%+ above median price in this area, so you'd expect a higher deposit)
 
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