Whereas it’s likely that every single landlord has seen higher costs over the past year, two out of five tenants have escaped any rent rise at all - and that’s even admitted by a tenant activist group.
Generation Rent says in June and July it surveyed 1,021 tenants that it calls “supporters” - so are not necessarily representative renters.
The findings from the activist supporters suggest 60 per cent have faced a rent increase in the past year, up from 45 per cent 12 months ago.
Some 20 per cent of the group’s supporters were asked to pay more than £100 more per month; of those, 15 per cent negotiated the figure down and 10 per cent have moved out anyway.
The survey asked the group’s supporters if the landlord or letting agent gave a reason for the increase - 12 per cent claim it was of because of higher mortgage payments and 17 per cent claim it was because of higher market rents.
Generation Rent claims its analysis of UK Finance and Bank of England figures suggests that 14 per cent of private tenancies are vulnerable to unsustainable increases in mortgage rates. The group says this “means that interest rates are less of a factor in setting rents than wider market forces.”
It does not give details of how its analysis came to this conclusion.
Generation Rent says its supporters are also complaining about group viewings, alleged bidding wars, and paying “multiple” months rent as a deposit.
Ben Twomey - the Generation Rent chief executive - says: “While many mortgage holders have yet to see their monthly payments increase, most private renters have already faced a rent hike this past year.
“So far only a minority of landlords have been affected so badly by rising rates that they are passing them on to tenants. But the rising cost of rent is a much wider problem caused by the failure to build enough homes where people want to live, and the ability of landlords to raise rents regardless of what their tenant can afford.
“The government’s response to this needs to put tenants first: prevent unaffordable rent increases, and protect tenants in their homes if their landlord needs to sell.
“Tenants relying on benefits need their housing support raised to cover what rents actually cost, and, to meet demand, we need a massive programme of building, particularly of social housing.”
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I wonder what percentage of Tesco or Asda shoppers would find their weekly shop had increased 🫤 it’s a stupid, click bait comparison by the lefties, our costs increase not just in the rentals but in our private life…. The tenants pay for it 💰💰 the rentals are an income, we increase the prices when we can. This is basic good financial planning to me.
Sandra Bowes-Rennox would call you another greedy landlord…. 😠
And yet no mention of the primary cause of rent rises being interest rate rises which would not have caused such pain without George Osborne and section 24 tax rules - if Mr T wants the government to support tenants perhaps they should reverse the s24 ‘tenant tax’. Sky news have also published an article today on rent rises and again no mention of S24
Yes Catherine so true
This is compounded by increase costs in selective licencing too. We run businesses and if cost increase so do rents. The more the Government/councils increase costs for LLs the more tenants pay. Simple economic of running a business!
Generation Rent is a major cause of higher rents. They have reduced supply of rental properties which has directly led to higher rents. They must be very unintelligent people.
When utility companies went bust and didn't honour the contracts I had signed I couldn't just instantly increase rents on those properties to cover the huge extra cost. I raised rents as and when I could to cover a percentage of the extra £22000 I suddenly had to find.
This year I have 5 mortgage fixes ending. My December mortgage payments will be close to £2500 higher than they were at the start of the year. Section 24 makes it even worse. It's going to take at least 3 years of realistic rent increases across the whole portfolio to get back to the position I was in a few months ago.
Alternatively I could just sell up and send my tenants out into the world to compete with countless other people for a reducing pool of even more expensive rentals.
Perfectly put that
“Generation Rant” - hahaha! I love this phrase and sums it up so damn well
Generation of the Great Un-washed idle ( more truthful, but too long for a catchy title )
Why have all Landlords not put up rents for all tenants?
Surely that would be fairest?
There is a risk that tenants will stop paying altogether if the rent is too high and too difficult for them to pay. The costs of food, heating etc. have risen by much more than 10%. Wages haven't kept pace with the price of essentials.
Last winter some of my tenants were not putting the heating on sufficiently. If I continue letting through winter 2023-2024 I am hoping that their wage rises will enable them to live to a slightly higher standard. I don't want mould problems in the flats.
Plenty of others only too willing and able to take over properties after eviction for non payment.
No one is entitled to free load off others unless genuinely inform, in which case that's what social housing should be used for.
Today's younger generations lack the work ethic and can do attitude of older generations. Perhaps moving to left wing utopias in North Korea, China or Russia would let them live in the luxury they deserve?
Robert, because some are in arrears how do you increase in that situation and many others can’t afford it.
Michael - How do you know they can't afford it? What are they spending their money on?
Some of the rents you say you charge are way below LHA. Even on minimum wage or in gig economy jobs the rent would be a small percentage of income.
Anyone on a really low or part time income would be entitled to benefit top ups, which is partly what your tax pays for.
If they're in arrears they need to go for some budgeting advice from the local Council or Citizens Advice. Make sure they're claiming anything they're entitled to.
The group says this “means that interest rates are less of a factor in setting rents than wider market forces.” .. REALLY!
Generation Rant say: “The government’s response to this needs to put tenants first...".
NO, the Government need to put the stock and supply of rented homes first, including those provided by us in the PRS. So stop punishing those who provide such housing.
Otherwise, things will get even worse for renters, especially the poorest ones.
Gen Rant also complain about multiple viewings: this has been happening for years with properties for sale where I live. Several potential buyers have a short time to look around and make their best offer. That's when they are committing to buying a place; not renting it where they can easily leave if they find they don't want to continue to live there (or e.g. damp problems covered up, and they have to pay out even more to fix those - which for rentals would be down to the Landlord).
I wouldn't rent to any Generation Rant supporter/social media poster: they'd either be economically illiterate or stupid; or both.
Where on earth do they get this statement from "Generation Rent chief executive - says: “While many mortgage holders have yet to see their monthly payments increase, most private renters have already faced a rent hike this past year". Since Covid, my tenant has had no increase, now in the 5th year. Our mortgage in the last year has increased over 300% !!
I'm getting out at the first opportunity. We have been good landlords over the years and even those who started as 'good tenants' gave us grief when they wanted to leave. The misinformation, unfair taxation and negativity surrounding the private landlord from all sectors and all political parties is just not worth the stress any more.
Mortgages are only one part of a landlords costs.
Most of us know our current fix will end at some point and will be preparing for it by raising rents realistically in advance rather than having a huge increase when the fix actually ends.
Some of us have a mix of mortgaged and unencumbered properties and will spread rent increases across the whole portfolio so one household isn't too harshly impacted.
One thing that activists tend to overlook when making sweeping statements is that there are millions of landlords all with different ideas and circumstances.
... and where are the ( alleged ) Landlord representatives to challenge the Tenant group false claims ?
Yet another 0.25% increase in interest.
You cannot pass the increase on to the tenants. Increase in rent possible once a year. Interest hikes are nearly every month. No win situation, sadly
We just need to increase what we can, when we can. That's assuming we want to stay in the industry. When rates stabilise we can change tack again. Tenants have had best part of 15 years of very infrequent rent rises from some of us. I'm not convinced they fully understand quite how lucky some of them have been. The economic climate has changed for all of us and it's unrealistic for tenants to expect someone else to shoulder the whole burden.
evict and rent to a new tenant for more, where there's a need there's a way
What was "Generation Rent group," expecting?
Hoping that LL's wouldn't pass on all of the added sh*t we've had to deal with and then announce that we're not increasing rent.
Their's nothing to admit, what they should've done well in advance, was to warn their member's, that with the pressure being imposed on UK 🇬🇧 LL's, the inevitable is going to happen.
If you've got a garden, ask your LL's if you can pitch a tent outside and sublet your room.
I haven't increased the rent on two houses for nearly ten and eight years respectively. Why? Because they're great tenants and have asked to nake improvements to my houses which they've willingly paid for (new kitchen, new bathroom, carpets etc.) themselves. The former is worth more than annual rent increases to me - the latter is a bonus. The current tenants in my third house are not very good so I've put the rent up.
The majority of landlords prefer not to raise rents unless absolutely necessary especially for good tenants.
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