Are most landlords under charging?

by Mark Alexander

11:55 AM, 6th November 2015
About 3 years ago

Are most landlords under charging?

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Are most landlords under charging?

Are most landlords are under charging

There is significant anecdotal evidence that most landlords outside London do not increase rents until there is a change of tenancy.

Property118 would like to investigate this.

With upward pressure on costs of compliance as well as the new tax changes it is likely that landlords will abandon this practice , but we would like to hear from landlords who have had the same tenants in a property for three or more years and not increased rents.

Please post your comments below.

This article will be shared in Google News and on Social Media in the hope that Press and other National and Media will pick up on the realities of renting.

Hopefully, we will gather overwhelming evidence that landlords have NOT generally increased rents during a tenancy but feel they will be forced to do so in future.



Comments

James Fraser

12:56 PM, 6th November 2015
About 3 years ago

Yes, without doubt!

I have tenancies which are up to 10 years old and have never raised the rent on in-situ tenants. At a time when ordinary 3 bed houses are storming through the £1000 barrier, even 1100 in some cases, my rents are resolutely still at £750. In the light of the tax announcements, I have written to tenants to say that from next April rents will become 850 and from April 2017 they will again shift sharply upwards.

I'm angry about this as I don't want to cause my tenants unnecessary harm (which this will) but it is being forced upon me by clause 24.

I can give you examples of many other landlords in this position, including some in central London. We generally want to pay our bills and earn a profit rather than bleed tenants dry, but no one wants to understand this!

Alison King

13:17 PM, 6th November 2015
About 3 years ago

I do an annual rent review but these usually result in "no change". Whilst inflation is low and interest rates stable I have no extra costs to pass on in any case. On principle I prefer not to increase rents except between tenancies as my tenants are good ones and I want to keep them. I did increase one once, but only because she owed some rent due to a difficult but temporary circumstance and so I raised the rent and wrote off the debt.
I have one tenant who has spent a lot of their own money improving the property and I have no intention of raising their rent for a very long time as it would be morally unjustifiable.
I am still considering the impact of the tax changes, but I would rather not raise the rents for my existing tenants unless I absolutely have to.

James Fraser

13:21 PM, 6th November 2015
About 3 years ago

In fact, the NLA regularly do surveys which consistently prove the vast majority of portfolio landlords do NOT raise rent or charge market value.

Lorraine Grundy

13:37 PM, 6th November 2015
About 3 years ago

I've had the same tenants in my 3 bed property for the past four years and the rent today is the same as it was when they first moved in. I also fix things as soon as they are reported faulty or broken, as I like to keep my tenants happy.

Danny H

13:49 PM, 6th November 2015
About 3 years ago

I've never raised rents during a tenancy. Why rock the boat for an extra few quid a month? It costs way more in vacancy, refurb, and advertising for a new tenant.

I will pretty much be forced to once the new tax kicks in and interest rates move up however. I will firmly be blaming the tory government for the rent hike when I break the news to my tenants.

Dr Rosalind Beck

13:55 PM, 6th November 2015
About 3 years ago

I have a pensioner and her adult son living in a two-bed property, whose rent has been £500 per month since they moved in 2008. I have just increased it to £525 as a direct result of Clause 24 and will increase it by the same amount each year now, or possibly more as I believe within a year or two it could probably go to £625. She may have to leave if she can't afford it and maybe try and find a flat, which could be a bit cheaper, if she can find one, but the stairs could be an issue.
As MPs and others who seek to demonise us like to use anecdotes, I will use one. I met a woman aged 34 yesterday who rents a house in the same street where I also rent one out. She pays £525 per month and up until recently I charged £475 and the rent had been at that amount for 5 years. I am now asking for £565 as it has been vacated and I will only consider working couples, applying strict affordability criteria.
The woman I met said that she had experienced 7 miscarriages and/or ectopic pregnancies during the last 10 years - she now had a beautiful two-year old baby boy. Her partner is 50 and his arms are wrecked from heavy work in the steel industry. They are on benefits and really struggle to get by.
Before they moved into their house (they say the landlord is lovely and was very understanding when the council screwed up with payments at the beginning of the tenancy as usual and there were delays in paying the rent), they lived in a one-bed flat and argued a lot. They even split up for a while as a consequence. In the future, families like this will have to move out of these houses and back into smaller accommodation as landlords are forced to max out the possible rents they can charge to cover the tax on finance costs. How many families will break up under the strain and end up costing the taxpayer even more and also lead to even more demand for housing as families break under the strain? There will also be costs to the health services with depression, anxiety and so on as money worries grow. The Government has considered none of this in its costings.

Jon Pipllman

15:18 PM, 6th November 2015
About 3 years ago

Location York, tenancy duration 4 years 4 months (1 x 6 month AST, followed by 2 x 24 month tenancies with a third 24 month tenancy due to start in Jan 2016)

Headline price now and for the 24 month tenancy that commences in Jan 16 is the same as it was on day 1: £695 per month.

The market rate for 6 months ASTs is - according the agent I use and the adverts I can see - nearer to £750

I prefer longer tenancies and the offer made to the tenants at the end of the first 6 month tenancy was

- £705 per month for another 6 month term,
- £695 per month for a 12 month term,
- £695 per month with a rebate of £695 at the end of the term for a 24 month term.

Same offer at the end of the first 24 month term and same offer for Jan 2016

Sian Wyatt

16:35 PM, 6th November 2015
About 3 years ago

I have 9 properties in the south east and south west of England. If I were to charge the average market rent I would be receiving around £10,750 per month. I actually receive £8,145 per month.

In four of my properties my tenants are disabled and living on benefits. They are not in a position where they can work and they are reliant on HB to pay their rent. If I increase the rent they will not be able to afford it as they are already topping up LHA. Other tenants are on low wages (and they don't spend money cigs drink etc.) and can barely afford the rent now. If I evict them, they will not be able to find anywhere else within commuting distance of their work at as low a rent.

Most of my rents have not increased at all or at least only by very small amounts over the last five years. I have always managed to keep up with any repairs and provided comfortable and safe homes. I feel very sad to be so vilified.

Sadly I will now have to increase rents and sell some properties - otherwise I could lose my own home.

Dr Rosalind Beck

17:58 PM, 6th November 2015
About 3 years ago

Reply to the comment left by "Edna " at "06/11/2015 - 16:35":

Hi Edna.
Have you told your MP about this? It would also be worth going to see the MP if you haven't yet. It is far better to at least get your voice heard and then if your MP ignores it you know at least you did your best. If you want any advice regarding what to say to your MP there are plenty of people on this site who would be happy to advise, myself included.
Like you I feel awful at the prejudice and discrimination we are facing - this tax change epitomises the blind hatred some people have for us - not our tenants, because they know us and often there is great mutual respect - more the trouble-makers who are interfering in our businesses and wreaking havoc in the sector.

Gary Dully

18:09 PM, 6th November 2015
About 3 years ago

I have 6 HMO's that rent out 4 rooms each with a weekly rent of £70pw (No change in 4 Years).

I have 4 x 1 Bed Flats in Liverpool that rent for £220, £299, £325 and £300 PCM
(Rents have fallen in Liverpool drastically for 1 beds)
1 x 2 Bed house in Warrington that's gone from £495pcm to £450pcm in the last year.
1 x 2 Bed house in Warrington that rents for £494pcm - (not changed in 5 years).
1 x 2 Bed in Stockbridge Village that rents for £360pcm - used to be £450 before the crash (No change in 3 years).

1 x 4 Bed HMO in Lincoln rents increased from £70pw to £75pw in the last 6 months.

1 x 2 bed house in Birkenhead £345pcm - rent reduced 3 months ago from £400pcm to shift it.

Clause 24, Liverpool Licencing and Welsh Licencing will have an impact on rents shortly.

The worst being Clause 24.
I don't mind the licencing so much as their are some dreadful competitors that need shutting down.

Clause 24 will be devastating throughout.

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