Activists say they know rent levels two years from now

With more and more mortgages coming to the end of their fix and payments more than doubling it will be amazing if rent increases are only 8.5%. It actually sounds very reasonable.
Every other cost is much higher this year than it was last year. Insurance premiums have risen hugely, tradespeople dream up a new day rate every time you speak to them.
A carpenter who charged £175 a day last year is £240 a day this year. I've just paid £600 more to have a boiler replaced than I paid for the same make and model 15 months ago.

A lot of us won't increase rents as much as we need to in one go but that does mean we will be looking for meaningful increases every year for the foreseeable. I'm already planning ahead to 2028.

The LHA is long overdue an increase. My newest UC tenant has a £316 a month LHA shortfall. He came via the Council Housing Options scheme so goodness knows exactly how that shortfall is being funded. He's making the payments on time so far but whether it's from additional DHPs and Hardship funding or by doing without basics I don't know. It would certainly help if LHA rates increased annually by at least the same percentage Social Housing rents increase by.

The other major help to contain rent increases would be to return landlords to traditional taxation and bin the totally unique Section 24.

Jo just ring LBC phone-in they are on now full scale attack on Landlords talking rubbish non-stop no one putting our side of the story.

All that talk about landlord being fined £485k other day is not a typical situation as if all landlords do this or could do it, it was end Semi house and a massive plot to side and rear and was established many years ago why did it take so long for action to be taken if action was required I think it probably could have got established use. They say the neighbours complained well possibly but didn’t seem immediately affected and a Public footpath right of way on one side I should know I often walked it, more likely to be the occupants the usual look at where I’am living Mr Council it terrible please give me a property more like the truth. I am not sticking up for the landlord but just my observation and take on this. I know the site and have driven in there years ago. Also the point is all those occupants went in of their own free Will no one put a gun to their head probably had cheap rent why else would they go in there not because it was expensive.

How about linking universal credit to the cost of food in Tesco as well.

• Robert Brown
• 13 December 2023 09:05 AM

Much easier to control spending on food than on housing due to the huge array of alternative foods and food suppliers.

Junk food and takeaways are far more expensive than home cooked healthy food but many younger people can't cook nowadays.

• Login to like comment
• 5
• Login to Report

 

Rents are going to carry on going up forever as more landlords sell into a healthy sales market when it arrives. We are all waiting for that day. Who wants to be demonised just for providing a service that is required? Who wants to keep 0n dealing with increasing red tape & taxes all the time? Life is too short and there are easier existences. So-long Buy-To-Let - we loved you once but all good things come to an end. You will be replaced with rent queues & rent hikes.

I wonder if that model fully takes into account the increasing scarcity of anywhere to rent. A high number of folk like me will be out of the PRS business completely by then and few are investing as it’s now such a low yield option. But the likes of Generation Rent won’t acknowledge this factor, which they helped to create. So I think their model is underestimating the ‘bigger shortage = increase rent’ scenario.

• Annoyed Landlord
• 13 December 2023 10:45 AM

But all the portals and mortgage ompanies are trying to convince is that landlords are not selling en masse. Could the be confusing the issue with lies, damned lies and statistics?

• Login to like comment
• 3
• Login to Report

 

Yes I can see a shortage until the Big New Boys on the Block get there unaffordable Flats up & running, the Government won’t allow those to loose probably subsidise them look at the tax advantages they have
already.
I don’t agree rents will keep going up people haven’t got it many accumulating debt at the moment. Loads being shouldered by tax payers and carrying 750’000, inactive people.

The only way to stop rents going up is to increase supply. Everything else is tinkering around the edges.

I need to be clear to our friend stick in the craw, rents will not be going up 8.5%. Mine will be 10% in the New Year and then a further 5% year on year depending on how I feel. If this continual kicking carries on I will continue to raise the rents.

If the government wishes to play nice then I will revert to my original way of never increasing for existing tenants who behave.

• Worried Landlord
• 13 December 2023 18:52 PM

The only people who might know how high rents will have to rise to cover costs are landlords.

• Login to like comment
• 4
• Login to Report

 

Don't worry Generation Rant. After the Renters Reform Bill (no mention of landlords in the title) it won't matter what the benefit levels are... :)