Cost of Living Crisis – What do we do as landlords?

We all know there is pain coming our way with the cost of energy prices, but the stark reality has hit home today even before the effects of oil and gas import restrictions from Russia bite.

Our tenant of a 3-bed bungalow had previously topped up her oil tank for around £250 in the past, but upon calling for a refill last week was quoted £460. After considering her options she was today quoted £970 and couldn’t get delivery for over 3 weeks. She is a great tenant and has a great job, but as a single mum there is only so much any budget can withstand.

If these price increases play out over the longer term, and as likely get worse, the Bank of England 2% inflation target is going to look like a bad joke. Then what does the Bank do? Throw its hand in the air and say nothing can be done so let’s not make the pain worse or do they follow their government remit and try to control inflation with interest rate increases and if so by how much? If interest rates rise section 24 tax positions are only going to get worse.

Will our costs increase (likely), will we need to pass this on in rent increases, will our tenants be able to afford this with knock-on food, goods and services price increases?

Yes, our tenant may not buy her children all new iPhones this year, but budgeting can only be taken so far.

Some difficult decisions and times are ahead.

Do we stick or do we twist and look to sell?

What will happen to the Housing Market?

You get over one crisis and then immediately get punched on the nose by another!

Ian