Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 3 weeks ago 36
I don’t suppose too many landlords have regulated tenancies but as one that does, registered (so called ‘fair’) rents are becoming increasingly pathetic, representing maybe only 40% of open market rental value or less. Of course, when it comes to repairs, tradesmen expect to be paid in full and will not accept 40% of their invoices.
I have just applied for the re-registration of a 3 bedroom house in North London where the current registered rent is £125.50pw compared to an open market rental of £300pw. However, what galls me most of all is that the ‘uncapped’ rent is £175pw, a difference (loss) against the registered rent of £2,574pa! Capping was introduced in February 1999 and restricts rental increases to RPI so that current rental values have no bearing on registered rents whatsoever.
I know that we will never see the end of regulated tenancies, other than by natural wastage, but I wonder if those of us who own regulated properties have a case to make representation to remove the need for capping as our rental income becomes more and more ‘unfair’?
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