10:40 AM, 22nd August 2022, About 2 months ago 41
Whether or not landlords should capitalise on sky-rocketing rental demand is a political hot potato. There are polarised opinions even among the Private Rented Sector’s leading centre’s of influence. For example …
Eddie Hooker, CEO of Hamilton Frazer (the owners of MyDeposits, Landlord Action and several other well known brands in our sector) is advising landlords -..
“We are starting to see landlords putting the rent up; they want the same yield,” he says. “If they are coming out of a fix on a mortgage they are probably likely to see a threefold increase in the interest rate, and therefore their yield will drop, and so they will be tempted to put the rent up – and obviously there is a lot of demand out there, because a lot of landlords have been tempted to exit the market.
“I think landlords would be better to look at the long term and not be tempted to suddenly whack the rent up, which would exacerbate the problem for the tenant, causing arrears.”
However, Mark Alexander, Founder of Property118.com disagrees. He said …
“Landlords have an obligation to themselves and their own families to maintain their own household incomes. They are feeling the financial squeeze on even more levels than their tenants. The mass exodus of so many landlords is caused by Government policy but it is creating demand for the landlords with properties still available to let. If they are able to sustain their own finances by letting to people who are ready, willing and able to pay higher rent that’s exactly what they should do. It is not their moral obligation to swallow the burden of Government failings and the anti-landlord policies that are driving so many landlords to sell up.”
He went on to say …
“The plight of tenants is not the fault of landlords. We are all in the same rat race and those who run the World are responsible for that. What do they expect is all to do? Maybe they expect tenants to get a second job and for their landlords to build, rent and manage more properties to solve the housing crisis and to pay the extra taxes and increasing costs of living, but we all need to live a little too don’t we? There has to come a time when we all say enough is enough!”
What are your thoughts?
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