Landlord rent rises spark calls for government intervention

Back in the days of long term low stable interests rates, traditional profit calculation and taxation and the ability to sign utility contracts that were actually honoured many landlords didn’t increase rents much. We felt it was better to not risk losing a good tenant and realistically we didn’t really NEED to increase rent much.
Fast forward to 2020 and suddenly we were hit with Section 24 which increased costs for unincorporated portfolio landlords, 2022 when 30 utility companies went bust due to Ofgen setting a price cap at an unviable level. Prices more than tripled, which for bills inclusive HMO landlords was a big problem. Energy contracts weren’t honoured but we had to honour our tenancy agreements. Then 2023 mortgage rates went through the roof. Rates shot up with very little warning and there was very little we could do to minimise the carnage.
Had we had fully functioning crystal balls I’m sure most of us would have had annual rent increases and stashed the money for when all these events occurred. Where were the activists to warn us of our stupidity in not having annual rent increases? In reality tenants should be focusing on all the rent they haven’t paid (due to our stupidity) rather than whining that we actually need to charge an economically viable rent now if we are going to continue being landlords.

I’ve had the same tenants in 2 properties that are exactly the same and they’ve both been there for 5 years both pay the same rent which I have not increased over the 5 years as both have been excellent tenants paying on time and maintaining the property.
Recently one went back home to Australia and my letting company suggested I alter the rent to the current market rate which over that 5 years had risen by an unbelievable 25% .I disagreed and suggested an increase of 15% it was put on the market and they had 12 enquiries the same day did 5 viewings the following day and the 15% was accepted in fact it began a bidding war which I find unacceptable I just want reliable tenants. They then approached the other tenant when his contract expired in November and he agreed to match the revised rent of the other property. As for the mortgage situation all my properties have always been bought for cash and its of no concern to the Government or any organisation how a Landlord funds their properties.I am reducing the number of properties on an annual basis to avoid paying too much Capital Gains as I’m fed up with the continuous interference of successive Governments in the Rental Market they will soon discover if others are doing the same a real crisis in available properties and I’ve been a Landlord for 15 years .

vReply to the comment left by Mick Roberts at 09/12/2024 – 10:48I’ve had the same tenants in 2 properties that are exactly the same and they’ve both been there for 5 years both pay the same rent which I have not increased over the peeiod as both have been excellent tenants paying on time and maintaining the property.
Recently one went back home to Australia and my letting company suggested I increase the rent to the current market rate which over the years had risen by an unbelievable 25%.
I disagreed and suggested an increase of 15% it was put on the market and they had 12 enquiries the same day did 5 viewings the following day and the 15% was accepted in fact it began a bidding war which I find unacceptable I just want reliable tenants. They then approached the other tenant when his contract expired in November and he agreed to match the revised rent of the other property. As for the mortgage situation all my properties have always been bought for cash and its of no concern to the Government or any organisation how a Landlord funds their properties.I am reducing the number of properties on an annual basis to avoid paying too much Capital Gains as I’m fed up with the continuous interference of successive Governments in the Rental Market they will soon discover if others are doing the same a real crisis in available properties and I’ve been a Landlord for 15 years .

Reply to the comment left by Malcolm Hill at 09/12/2024 – 16:25
General inflation has been 25% over the past 5 years. Inflation for private rental properties has been much, much higher.

Listen to your agent or you risk attracting a poorer tenant and falling victim to (almost guaranteed) rent controls.

Maybe offer no increase for 2 years – if you’re feeling altruistic.

I can reassure Ben and Lucy that if my long term tenants who pay well below market on my last remaining property (out of 14) leave, I will not be increasing the rent by so much as a penny.

That’s because there is no level of rent that would induce me not to sell – it will be a new landlord (if not bought by a FTB) who understandably will need to charge full market rent.

Reply to the comment left by Cider Drinker at 09/12/2024 – 16:36
My new contracts are for 2 years which I always offer although not always taken up
Its easy to lose touch of rents when you’re leaving it to an Agency but when you’ve got good tenants in all my 15 years I’ve never had a default although I insure my rents.I suppose unlike some landlords I don’t have interest to pay so virtually the whole rent except for a very competitive management charge which is deducted and the rent insurance the rest is other than tax is mine.
When I look back the rents have doubled over that 15 years while the values have as well.

Reply to the comment left by Malcolm Hill at 09/12/2024 – 17:06
You won’t be offering two year contracts now. When the RRB is enacted, ALL tenancies will become Assured Tenancies with no fixed term.

I don’t pay for rent insurance because I could cope with one or two non-payers.

Reply to the comment left by Malcolm Hill at 09/12/2024 – 16:27

Yes, they constantly telling us what we can & can’t do cause they found a bad Landlord in the next town.
Without coming to ask our tenants what they would like.
We are the Housing Providers. They need to be should be coming to ask us
What can we do for you, so you help us house all these people that are struggling to get homes?

if anyone out there is Twomey’s LL, please issue a S13 and increase his rent to market rate immediately and at the same time as issuing a S21!!!! He then might be pre-disposed in organising his own affairs and stay out of others business matters!

Reply to the comment left by Malcolm Hill at 09/12/2024 – 17:06
Why are you paying rent insurance if you’ve never had a default ?