Are most landlords under charging?

Are most landlords under charging?

11:55 AM, 6th November 2015, About 6 years ago 85

Text Size

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

by Carol Duckfield

8:05 AM, 26th November 2015, About 6 years ago

I have 9 properties and do not have a policy of annual increments and only look to increase rents at a tenancy change although this isn't necessarily the case.

I have properties where the rent hasn't changed one since 2008,one since 2012, two since 2013 and two where the rent has gone down in recent years.

Unfortunately this will have to change going forward

by safetylady silver

13:03 PM, 26th November 2015, About 6 years ago

Thing is - LHA is based on actual existing rents across the Rental Market Area . These are evaluated and reviewed by the Valuation Agency annually. (not sure how this is actually done).
So if rents dont increase, neither will LHA. In fact my area has reduced the LHA this year.

If LHA doesnt increase, tenants won't be able to afford rent increases. Etc.

The open market rental rates may swing it, but in many areas, the proportion of LHA tenants has increased.

by Claire Oswald

13:13 PM, 26th November 2015, About 6 years ago

I tend not to increase rent for sitting tenants. My current tenants have only been in for around a year, but a previous tenant was there for 6 years with no increase.

Clause 24 could be a definite impetus to raise rent to cover extra tax, yes.

by Carol Duckfield

13:22 PM, 26th November 2015, About 6 years ago

Reply to the comment left by "safetylady silver" at "26/11/2015 - 13:03":

The Valutiona Agency regularly attend landlord shows and events across the country to engage with landlords and to capture the details of the rents that are being charge and the use this information to form the picture across the country. I e-mail my contact every 6 months or so with an update. They appreciate the info as it makes their life easier, their information is more accurate and feeds directly into LHA rates

by Martin S

13:50 PM, 26th November 2015, About 6 years ago

Reply to the comment left by "Carol Duckfield" at "26/11/2015 - 13:22":

I surely can't be alone in having the Valuation Agency contact me most years, asking to fill in their form(s) providing information about rent received per property, and details about the number of rooms, parking etc?

by Matt Wardman

15:02 PM, 26th November 2015, About 6 years ago

Manage about 8 properties for family members, including 2 student houses on 12 months contracts. On the others tenancies are usually 2-10 years, my policy has been to increase rents in line with inflation or slightly less most years. Rent levels are set at a little below market - perhaps 5% - at the start to get tenants who will stay for longer.

There may be an appropriate increase to cover part of the cost, if a significant investment is made which results in betterment, such as single->double glazing or a conservatory. That would be agreed with T in advance. All my properties are brought up to EPC D or above.

I gave up on dealing with councils for LHA because of the time and buggeration involved, but would do so for existing Ts if they are struggling.

by Luke P

15:11 PM, 26th November 2015, About 6 years ago

Reply to the comment left by "Martin S" at "26/11/2015 - 13:50":

I have a chap that visits me once a month from the VO. My figures make up around 10% of his total for the North East Lincolnshire area, so I can and do have quite a sizeable impact on the rate of HB in my area.

by Trendo

19:12 PM, 26th November 2015, About 6 years ago

I spk to VO every 12mths to update them on rent on my portfolio

by Graham Durkin

22:00 PM, 26th November 2015, About 6 years ago

I liase with the valuation office every time i change a tenant ,I give them a breakdown of the property and the rent charged,they annually collate all the rent from those that have submitted info that is charged on the range of properties and they take off the highest & lowest, get to the 30% percentile point ,this determines what the rate is for the next year APRIL-APRIL. should landlords charge LOWER RENTS than the norm then this will effect the outcome when their calculations are made. so people that choose to offer lower rents ultimately effect those landlords that take L.H.A.tenants

by Michael Fickling

10:25 AM, 27th November 2015, About 6 years ago

Ladies and gents all this discussion about rents isnt going to overturn the tax change inflicted upon us and make no mistake if rents receive the similar "soaring" prices headlines that house prices have... then government can and foolishly WILL restrict rents and rent increases and make us A.. comply and B... pay for it. Check out the history of that one in New Zealand if you like and elsewhere.
Returning to the new taxing...We have a strong legal case here in my view..no business area or investment has ever had its major cost ignored and potentially been taxed on non existent profits.That is a completely ridiculous scenario morally and logically indefensible and contrary to all previous tax regulation.Furthermore many of us are pushed into an inappropriate general tax bracket again on non existent profit..real world. The way to oppose this is through the courts,that is the only thing that the government HAS to take notice of.Telling them how nice we are on rents and warning them rents will rise will not work.It may even encourage a further draconian response of rent restriction. There are more than enough of us to take this to court at very modest cost to each of us individually.That is the way to go.We should get on with it.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER