0:05 AM, 10th July 2024, About A year ago 29
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Landlords across the UK are planning to raise rents in the next year, with nearly 85% expecting to do so, research reveals.
A new survey by Landbay reveals a big shift from previous years, where rent rises were primarily driven by high demand for rented homes.
However, rising interest rates and operational costs are now the main factors behind rent hikes.
Rob Stanton, Landbay’s sales and distribution director, said: “Whereas before, rising rents would often reflect the increasing demand for good quality rental accommodation, today’s market now means landlords also have to factor in higher interest rates and operating costs too.
“With no alternative, many landlords have to consider increasing rent to cover their outgoings.”
He added: “As a large number of landlords look at their remortgage options, they can be encouraged by the innovation we have seen from lenders across the buy to let market.”
The survey found that 42% of landlords planning increases manage portfolios of 4-10 properties.
Notably, a significant portion (16%) pay more than 13% of their rental income on property management fees.
Just under a third (30%) pay 5% of their rental income, while slightly fewer (29%) pay between 9% and 12%.
Landbay says that a third (36%) of landlords are looking to put up rents by up to 5%, and 37% are planning to increase by between 6-10%.
A smaller group of landlords (8%) say they are anticipating increases of 11-19%.
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Beaver
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Member Since May 2018 - Comments: 1959
14:03 PM, 10th July 2024, About A year ago
Reply to the comment left by BillyC at 10/07/2024 – 13:55
Apparently it’s going towards affordable housing that housing associations can’t afford.
PH
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Member Since May 2021 - Comments: 351
15:17 PM, 10th July 2024, About A year ago
Reply to the comment left by Beaver at 10/07/2024 – 11:37
2 years living there, not 2 years from the beginning of a new ast for example
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Member Since May 2018 - Comments: 1959
15:25 PM, 10th July 2024, About A year ago
Reply to the comment left by PH at 10/07/2024 – 15:17
Thanks. So basically what you are saying is that the proposal is that if a tenant has lived in your property for 2 years then you can get them out if you have a valid reason, e.g. non-payment of rent, but if the tenant hasn’t yet been in the property for 2 years then you can’t get them out.
PH
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Member Since May 2021 - Comments: 351
15:26 PM, 10th July 2024, About A year ago
There must be 1000’s of homes across the country lying unused for whatever reason so surely these can be acquired by councils and turned into very good housing for relatively peanuts which would drastically reduce the numbers on waiting lists and save a small fortune on costs.
Beaver
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Member Since May 2018 - Comments: 1959
15:59 PM, 10th July 2024, About A year ago
Reply to the comment left by PH at 10/07/2024 – 15:26
I don’t know, although if those homes are nowhere near jobs, or the places that people need to live because that’s where their kids are at school then it doesn’t make much difference.
But apparently there are affordable houses being built in London that housing associations can’t afford. The PRS could buy them but the PRS won’t do it if it faces policies that mean in effect that it is being robbed, i.e. its assets are being sequestered through rent controls and additional costs that benefit no tenant.
The government just launched a new National Wealth Fund to ‘unlock private investment’.
https://www.gov.uk/government/news/boost-for-new-national-wealth-fund-to-unlock-private-investment#:~:text=The%20National%20Wealth%20Fund%20will%20help%20the%20UK%20keep%20pace,technologies%20and%20grow%20their%20economies.
But it doesn’t look as though that the ‘National Wealth Fund’ is going to be used to acquire affordable houses that housing associations can’t afford. Unless that’s via industries selling renewables.
Apparently it is supposed to attract pension funds. Some of us would be happy to invest our SIPPs in residential property if we were actually permitted to do it.
JB
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Member Since May 2017 - Comments: 722
16:21 PM, 10th July 2024, About A year ago
Reply to the comment left by Beaver at 10/07/2024 – 15:25
Yes, that’s what I meant. I believe this is what Matthew Poppycock (AKA Pennycook, the new housing minister) wanted in the RRB when the Tories were doing it, so it could resurface as such.
The point being, you can issue a new AST to an ‘old’ tenant without resetting the clock. As far as I understand it …. we will have to wait and see.
Beaver
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Member Since May 2018 - Comments: 1959
16:25 PM, 10th July 2024, About A year ago
Reply to the comment left by JB at 10/07/2024 – 16:21
I thought that all ASTs were just to roll over into periodic tenancies. And so I can’t see what the relevance of issuing a new AST to an old tenant would be. Perhaps I misunderstood.
JB
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Member Since May 2017 - Comments: 722
16:27 PM, 10th July 2024, About A year ago
Reply to the comment left by Beaver at 10/07/2024 – 16:25
Some tenants ask for new AST’s or you may want to reword it. One of mine wants to be sure of another 6 months rather than the possiblilty of being given 2 months notice
Reluctant Landlord
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Member Since September 2018 - Comments: 3335 - Articles: 5
16:46 PM, 10th July 2024, About A year ago
Reply to the comment left by JB at 10/07/2024 – 16:27
…but then you have the faff of reissuing all the certs/docs and reprotection of the deposit etc. At that point I’d increase the rent to account for this. Not sure if T be happy then if that were the case!
Plus wouldn’t that reset the clock for the purposes of the possible 2 year occupancy issue? Does an occupancy mean a continual occupancy regardless of the AST or does it reset at each new AST?
If that’s the case then not worth even offering a new AST….
havens havens
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Member Since April 2024 - Comments: 94
16:52 PM, 10th July 2024, About A year ago
It’s tough news for renters and landlords alike with these rent increases looming. For tenants, it might be a good time to review your budget and see if there are any areas where you can cut back. Sometimes negotiating with your landlord can also help, especially if you’re a good tenant with a history of on-time payments.
For landlords, exploring ways to increase efficiency in property management or finding ways to add value to your rental properties could help offset some of those rising costs. It’s a challenging time, but staying informed and proactive can make a difference.