Rental market is utterly broken
Discussion
philv said:
BoostMonkey said:
Scottish government apply 3% annual rent increases between tenancies.
https://uk.style.yahoo.com/snp-closes-rent-control...
Will Barber Taylor, of campaign group Generation Rent, said it was positive for renters that the “loophole” will be closed as it had “undermined” the effectiveness of the rent control measures in terms of controlling costs for tenants.
He added: “Even if a certain number of landlords do decide to sell up, quite often they will be selling to other landlords.
“The homes themselves will not dissipate – they will either remain in the private rented sector with a different landlord or they will be sold on to someone who will be able to occupy that house, often to someone who had previously been renting.”
I'm not sure "Will" fully understands the dynamic's of a market and if this policy extension leads to less availability (which I have no doubt it will). There will be many landlords sticking on the 3% every year for the foreseeable, with many applying for the 6% exceptional increase on the back of interest rate rises and other factors.
If your only option is to rent and you can't get one, through lack of availability the rent control is pointless.
Shelter and the like would be far better encouraging the UK & Scottish government to build far far more social housing to take the pressure out of the system. With private building down, there is plenty of capacity in the system to build. The main obstacle is planning & funding.
one of my BTL is rented at 20% below market value pm.https://uk.style.yahoo.com/snp-closes-rent-control...
Will Barber Taylor, of campaign group Generation Rent, said it was positive for renters that the “loophole” will be closed as it had “undermined” the effectiveness of the rent control measures in terms of controlling costs for tenants.
He added: “Even if a certain number of landlords do decide to sell up, quite often they will be selling to other landlords.
“The homes themselves will not dissipate – they will either remain in the private rented sector with a different landlord or they will be sold on to someone who will be able to occupy that house, often to someone who had previously been renting.”
I'm not sure "Will" fully understands the dynamic's of a market and if this policy extension leads to less availability (which I have no doubt it will). There will be many landlords sticking on the 3% every year for the foreseeable, with many applying for the 6% exceptional increase on the back of interest rate rises and other factors.
If your only option is to rent and you can't get one, through lack of availability the rent control is pointless.
Shelter and the like would be far better encouraging the UK & Scottish government to build far far more social housing to take the pressure out of the system. With private building down, there is plenty of capacity in the system to build. The main obstacle is planning & funding.
Next year it will increase by the maximum possible in case labour dick about like this.
A shame for my tenants.
98elise said:
We are doing the same. We don't want to be caught out with low rents and a capped % rise. The difference would compound over time and you're locked into that low rent. The only sensible thing to do is be at market and apply all caps fully.
Any sensible long term rent control plan from Labour will involve setting absolute maximum values based upon property type and location. So bumping up rents now to pre empt things won't have any effect.Olivera said:
98elise said:
We are doing the same. We don't want to be caught out with low rents and a capped % rise. The difference would compound over time and you're locked into that low rent. The only sensible thing to do is be at market and apply all caps fully.
Any sensible long term rent control plan from Labour will involve setting absolute maximum values based upon property type and location. So bumping up rents now to pre empt things won't have any effect.Puzzles said:
Olivera said:
98elise said:
We are doing the same. We don't want to be caught out with low rents and a capped % rise. The difference would compound over time and you're locked into that low rent. The only sensible thing to do is be at market and apply all caps fully.
Any sensible long term rent control plan from Labour will involve setting absolute maximum values based upon property type and location. So bumping up rents now to pre empt things won't have any effect.That’s assuming there’d still be enough rentals left to make comparisons with
andy43 said:
Puzzles said:
Olivera said:
98elise said:
We are doing the same. We don't want to be caught out with low rents and a capped % rise. The difference would compound over time and you're locked into that low rent. The only sensible thing to do is be at market and apply all caps fully.
Any sensible long term rent control plan from Labour will involve setting absolute maximum values based upon property type and location. So bumping up rents now to pre empt things won't have any effect.That’s assuming there’d still be enough rentals left to make comparisons with
98elise said:
andy43 said:
Puzzles said:
Olivera said:
98elise said:
We are doing the same. We don't want to be caught out with low rents and a capped % rise. The difference would compound over time and you're locked into that low rent. The only sensible thing to do is be at market and apply all caps fully.
Any sensible long term rent control plan from Labour will involve setting absolute maximum values based upon property type and location. So bumping up rents now to pre empt things won't have any effect.That’s assuming there’d still be enough rentals left to make comparisons with
I’m amazed nobody like Shelter or Crisis has formally requested they keep their noses out.
andy43 said:
98elise said:
andy43 said:
Puzzles said:
Olivera said:
98elise said:
We are doing the same. We don't want to be caught out with low rents and a capped % rise. The difference would compound over time and you're locked into that low rent. The only sensible thing to do is be at market and apply all caps fully.
Any sensible long term rent control plan from Labour will involve setting absolute maximum values based upon property type and location. So bumping up rents now to pre empt things won't have any effect.That’s assuming there’d still be enough rentals left to make comparisons with
I’m amazed nobody like Shelter or Crisis has formally requested they keep their noses out.
I would be happy to see sensible reform of the PRS, but the government just seem intend on demonising Landlords and costing them more money.
If instead they concentrated on reform that benefited both sides they might even reduce rents. One example is some councils rent direct from Landlords at a much reduced rate, and they manage the tenant.
I would like to see longer tenancy periods and more rights for tenants to keep pets and decorate etc, but make it far easier to evict for non payment of rent and to recover damages. The ideal situation for a Landlord is someone who looks after a property like their own, and stays for years.
That why my tenants currently pay under market. My longest tenant has been there 14 years, my shortest 10 years.
BoostMonkey said:
Scottish government apply 3% annual rent increases between tenancies.
https://uk.style.yahoo.com/snp-closes-rent-control...
Will Barber Taylor, of campaign group Generation Rent, said it was positive for renters that the “loophole” will be closed as it had “undermined” the effectiveness of the rent control measures in terms of controlling costs for tenants.
He added: “Even if a certain number of landlords do decide to sell up, quite often they will be selling to other landlords.
“The homes themselves will not dissipate – they will either remain in the private rented sector with a different landlord or they will be sold on to someone who will be able to occupy that house, often to someone who had previously been renting.”
I'm not sure "Will" fully understands the dynamic's of a market and if this policy extension leads to less availability (which I have no doubt it will). There will be many landlords sticking on the 3% every year for the foreseeable, with many applying for the 6% exceptional increase on the back of interest rate rises and other factors.
If your only option is to rent and you can't get one, through lack of availability the rent control is pointless.
Shelter and the like would be far better encouraging the UK & Scottish government to build far far more social housing to take the pressure out of the system. With private building down, there is plenty of capacity in the system to build. The main obstacle is planning & funding.
The SNP/Green double down's done so the U-turn and back to normal's about 3-6 months away (hopefully)https://uk.style.yahoo.com/snp-closes-rent-control...
Will Barber Taylor, of campaign group Generation Rent, said it was positive for renters that the “loophole” will be closed as it had “undermined” the effectiveness of the rent control measures in terms of controlling costs for tenants.
He added: “Even if a certain number of landlords do decide to sell up, quite often they will be selling to other landlords.
“The homes themselves will not dissipate – they will either remain in the private rented sector with a different landlord or they will be sold on to someone who will be able to occupy that house, often to someone who had previously been renting.”
I'm not sure "Will" fully understands the dynamic's of a market and if this policy extension leads to less availability (which I have no doubt it will). There will be many landlords sticking on the 3% every year for the foreseeable, with many applying for the 6% exceptional increase on the back of interest rate rises and other factors.
If your only option is to rent and you can't get one, through lack of availability the rent control is pointless.
Shelter and the like would be far better encouraging the UK & Scottish government to build far far more social housing to take the pressure out of the system. With private building down, there is plenty of capacity in the system to build. The main obstacle is planning & funding.
https://uk.finance.yahoo.com/news/edinburgh-declar...
GordonGekko said:
Listed buildings are exempt from the EPC
https://www.gov.uk/energy-performance-certificate-...
Every day I admire mine but it is chilly during the winter months
Peak PH. Steering wheel boss and crenellations.https://www.gov.uk/energy-performance-certificate-...
Every day I admire mine but it is chilly during the winter months
Wild.
GordonGekko said:
Listed buildings are exempt from the EPC
https://www.gov.uk/energy-performance-certificate-...
Every day I admire mine but it is chilly during the winter months
That may be correct but the property still has to be assessed and as a LL I still need to provide a copy of the EPC to the tenant. I don't think I would rely on the current legislation in the event that a minimum EPC standard was mandated for rental properties and as a LL I'm sure I would be penalised for not being able to attain a minimum grade C EPC.https://www.gov.uk/energy-performance-certificate-...
Every day I admire mine but it is chilly during the winter months
Of course an unintended consequence of minimum EPC standards for rental property could be all listed properties being removed from the rental sector if there is no likelihood of the property ever achieving a satisfactory standard.
Anyway, a moot point atm as the proposed legislation is on the back burner.
caiss4 said:
Anyway, a moot point atm as the proposed legislation is on the back burner.
And it would never have been relevant anyway because a) the amount of listed rental properties is a infinitesimally small percentage of the overall rental stock,
b) there was a £15k (?) limit of upgrades before a property would be exempt from the EPC requirements
philv said:
BoostMonkey said:
Scottish government apply 3% annual rent increases between tenancies.
https://uk.style.yahoo.com/snp-closes-rent-control...
Will Barber Taylor, of campaign group Generation Rent, said it was positive for renters that the “loophole” will be closed as it had “undermined” the effectiveness of the rent control measures in terms of controlling costs for tenants.
He added: “Even if a certain number of landlords do decide to sell up, quite often they will be selling to other landlords.
“The homes themselves will not dissipate – they will either remain in the private rented sector with a different landlord or they will be sold on to someone who will be able to occupy that house, often to someone who had previously been renting.”
I'm not sure "Will" fully understands the dynamic's of a market and if this policy extension leads to less availability (which I have no doubt it will). There will be many landlords sticking on the 3% every year for the foreseeable, with many applying for the 6% exceptional increase on the back of interest rate rises and other factors.
If your only option is to rent and you can't get one, through lack of availability the rent control is pointless.
Shelter and the like would be far better encouraging the UK & Scottish government to build far far more social housing to take the pressure out of the system. With private building down, there is plenty of capacity in the system to build. The main obstacle is planning & funding.
one of my BTL is rented at 20% below market value pm.https://uk.style.yahoo.com/snp-closes-rent-control...
Will Barber Taylor, of campaign group Generation Rent, said it was positive for renters that the “loophole” will be closed as it had “undermined” the effectiveness of the rent control measures in terms of controlling costs for tenants.
He added: “Even if a certain number of landlords do decide to sell up, quite often they will be selling to other landlords.
“The homes themselves will not dissipate – they will either remain in the private rented sector with a different landlord or they will be sold on to someone who will be able to occupy that house, often to someone who had previously been renting.”
I'm not sure "Will" fully understands the dynamic's of a market and if this policy extension leads to less availability (which I have no doubt it will). There will be many landlords sticking on the 3% every year for the foreseeable, with many applying for the 6% exceptional increase on the back of interest rate rises and other factors.
If your only option is to rent and you can't get one, through lack of availability the rent control is pointless.
Shelter and the like would be far better encouraging the UK & Scottish government to build far far more social housing to take the pressure out of the system. With private building down, there is plenty of capacity in the system to build. The main obstacle is planning & funding.
Next year it will increase by the maximum possible in case labour dick about like this.
A shame for my tenants.
Currently paying £750. Just put it up. Market rate is now £950 plus.
If the tenant decides to leave before or at that point, we have 5 options
1) Quick Freshen up. Back on the market at £950
2) Replace Kitchen cupboard doors and work top, to bring it more up to date., re-do laminate in lounge. Back on the Market at £1050.
3) Sell. As is. £175k ?
4) Sell. After after said upgrade. £185k ?
5) spend £50k to get 2 more beds and a 2nd bathroom rent out as a 5 bed for £1500 a month. (Or 1900 as a HMO.
Probably go for option 2 or 4
With saving rates at the present amount, the profit (pace you take off the interest we could get if we put the money in the bank) is probably £3k a year.
Is it worth the hassle ?
Probably go option 4.
iphonedyou said:
GordonGekko said:
Listed buildings are exempt from the EPC
https://www.gov.uk/energy-performance-certificate-...
Every day I admire mine but it is chilly during the winter months
Peak PH. Steering wheel boss and crenellations.https://www.gov.uk/energy-performance-certificate-...
Every day I admire mine but it is chilly during the winter months
Wild.
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