Updating post from Reddit.
The Bank of England asks for the opinion of Agents, they took that on board and in the Bank of England November 2024 Monetery Policy Report the Bank of England said the following:
>Rental price inflation has slowed further with some instances of small decreases in rent. The market has reached the upper limit of affordability for prospective renters and, in some areas, supply has picked up after regulatory changes. Private rental supply remains constrained in Scotland as landlords look ahead to upcoming regulations.
This short quote makes me reflect on three things.
- Rents have decreased - Have they, they seem to have been increasing to me.
- Rental Supply has picked up We're doing a lot of landlord portfolio stuff but the smaller landlords are not as active.
- Rent has peaked Has it, perhaps so.
In my city - Lincoln a refurbished 2 bed terrace in what you would call an undesirable area can easily fetch £900 a month when minimum wage is £1982 before tax… it’s becoming very difficult for people to live.
I can see multi family rental being a thing soon. Something a bit different to your standard HMO
Slums. They're called slums.
The ones that offer work for housing.... Work Houses
Soon be back to Charlie and the chocolate factory conditions. Sharing socks and baths with Gramps.
But there is maximum occupancy and essentially slums are illegal. At the same time, we are not increasing but decreasing net supply,and for many housing is not affordable.
This is a slow moving catastrophe. I expect the lls to be further vilified, but no real solution be implemented.
🤣🫡
I don't think we have the social skills to to have multi family renting. people cant even get along with their neighbours, family, work mates, colleagues, children's teacher, shop workers etc.
we had them for years. my dad lived with 4 generations of his family my grandfather lived in multi homes across the east end, whole family's to a room each room was a different family
we moved past that style of living and we shouldn't return
I disagree. In western culture we seem to praise moving out as soon as possible but there are loads of families near us that have multi generational homes. They are on the whole very grounded families, looking after each other and sharing support across generations. Instead of paying for childcare there is always someone there, instead of pensioners worrying about being alone they have 24x7 access to a friendly face. Cost of living is less important as economies of scale come into play.
I have reflected on this a lot recently and whilst some people are just going to argue with family, for many people in modern houses, multi gen living seems like a very attractive proposition.
if the house is built for multi generation living then sure. British houses never were.
Someone recently suggested to me that there's a limit to how many names can be on a mortgage, therefore limiting opportunities for multi-generational or polyamorous families, and thus driving the demand for all adults to work full time to be able to afford between 1/3 and one whole house and pay strangers for child care... And that basically capitalism benefits from selling us "independence" and that loneliness has been glorified to boost the economy and it made me question everything that I thought I knew. It still keeps me awake at night.
British housing has never been built in a way that's optimised for that sort of living though
Multi generational households are absolutely fine if it's a choice. The comments in this thread are not implying it's a choice.
Yea put the parents in care home instead, and we can go on holiday
It’s not about “going on holiday” - caring for an ageing relative in your own home is an incredible burden to bear. Particularly if you have a small house and kids of your own. Even more so if the old person becomes unwell.
what are you on about. i didn't say that at all
I think we as a country should have forced social therapy some people are just horrid in society and have so much anger. We can only improve as people in society once we start to take action against this. People just turn a blind eye and keep to themselves but its clearly becoming a daily problem in public whether it's addiction or upbringing or shit that's happened to them we really need a circle of help.
I'm not sure that fixes the economic problems of the situation.
Sounds like you might need a bit of whatever you’re suggesting
Min wages have no relationship to cost of living.
You mean HMOs? It’s already a thing…
Not HMOs exactly… something a little different than a standard house share.
Boris was trying to do something similar but with family ownership through the idea of allowing families to unite and take out huge mortgages to buy ridiculous sized homes which will take like 2-3 generations to pay back. The idea was good but it's not healthy to be stuck with family for such long periods of time. We all need to move out of parents homes to progress else our mental health will fail. Same mental health issues if we can't afford to live once we move out. We have a messy economy without a solution unfortunately so we continue to move sideways and backwards.
Urghh imagine buying a house taking out a generational mortgage that you’ll be dead before it’s anywhere near paid off
I think that was the idea is that you wouldn't need to rent or worry about rent increases and your kids wouldn't need to worry about it either as they take over the debt. Sounds great for first generation but what kid wants to take on their parents debt or property half the time is going to be a big burden.
Is there any science to suggest that living with your family is detrimental to mental health? This isn't entirely uncommon in some cultures.
There are a lot of papers on it for western culture
https://pmc.ncbi.nlm.nih.gov/articles/PMC5642303/
I think a lot of it is down to western relations, the size of properties lots of families live in built up areas two up two down terraced homes which are barely fit for 3 people but usually house way more than that. Lots of people resent their elders in uk because they blame the housing situation and finances on decisions they made. For example google search for boomers are to blame for housing and you will find a high return rate of information around that. I know there are cultures that are brought up like this but some of these try to replicate it in uk and I do see a lot of situations where the younger generations are being manipulated financially by their elders i assume as the cost of living went up some families are struggling to the point I see a lot of fraud posts whereby their dad has tried to put them through their companies books to avoid paying taxes. I mean there does need to be more research on the matter but I do know first hand from friends that it has had really bad mental health consequences to them and its not just one off its most of my friends that have had to live longer with parents or return.
I'm yet to see anyone happy returning to full time living with parents in their 30s. I assume our culture starts to make people feel like a failure in western culture. For example most girls in uk will pass on a guy if they mention they still live with parents i assume as it sort of indicates they can't look after themselves so how can they support them.
Or ours not so long ago
Shout out to Monks Road
2 people i.e. a couple would have a combined take-home pay of ~£3200 a month and spend 28% on rent which is still below the arbitrary recommended 30% mark. Doesn't sound so bad to me.
2 bed in an undesirable part of Lincoln…
Similarly, the ‘arbitrary’ 30% is still a pretty good yardstick to make sure that tenants can afford bills, enjoyment, a rainy day fund and money towards deposit.
So as soon you move out of that undesirable area into somewhere desirable or more economically active, that figure for 2 on minimum wage for a 2 bed terrace because 50% of take home. For a single person it becomes absolutely impossible to live alone, something which most landlords here were able to enjoy in their 20s.
Because you're the one profiting
No, because spending 28% of your income on housing is objectively not that much. My own housing cost is right around that mark too
Because spending 28% of your COMBINED income on a 2 bed which is only just big enough for 2 people is objectively LOADS.
You live alone in a 2bed?
No.
No that’s combined income. So if you’re single or your partner can’t work you’re just fucked. Get a grip pal.
If you're single or your partner can't work, don't live in a 2-bedroom house. You're talking about minimum wage i.e. the absolute minimum living standard, not some ideal scenario.
Living in a 2 bed house as a single adult SHOULD be the minimum living standard. That's the problem.
How did you get a leg up to become a landlord in the first place OOI?
I was and still am very lucky in my career. I got a degree and got a well paying job straight out uni then saved up enough for a deposit.
You couldn't wait to begin the cycle of exploitation!
You can call it whatever you want, it's part of a diversified investment portfolio, property is just part of it. If you get in early, your returns are greater.
What about the folk that can't get in early, or at all?
What about them? They have all the same opportunities I had, no? I went to school, got a job and saved up. Everyone else can do that as well
You truly believe you were born into a "level playing field"?
I'm not about to say that there's no way for people to do things, but pretending that the only difference between you and others is your gumption is really telling.
If people don't do that, should they just pay more and more of their earnings to you because you did?
If everyone did it, who would you rent to?
What makes you think I wasn't born into a level playing field? You might I'm much older than I am or that bought property when it was much cheaper, that's not the case, I'm in my 20s, I got my first rental property in Aug 2022 at the peak of house pricing.
God you’re insufferable
Property shouldn't be an investment.
Why not?
Whose fault is only being capable of getting a minimum wage job....
>I can see multi family rental being a thing soon. Something a bit different to your standard HMO
I see where you are coming from. However overcrowding regulations may be a hurdle to 'compliant' landlords permiting that to happen.
good. the fact most landlords in this comment section have 0 thought for tenants. instead thinking of how to maximise income past the upper threshold is all that is wrong in our industry. some vile slumlords out there.
It's foolish to invest in a business without aiming for maximum profits. Are you confusing landlords with charities? Many people do.
terrible argument.
you can make profit on BTL without squeezing a tenant for every last penny.
you confusing that with charity does expose what you are however. says it all that you are not happy with some money, or even most of the money, you want to make ALLLLL the money that it goes beyond the threshhold of what people can survive.
I run a successful business, my tenants stay. I respect their right to more than just exist for me to rinse dry.
I love that because im an ethical landlord who has respect for people as people, I have my flair changed to tenant. Honestly. lol.
As someone who used to run a business, I was careful to keep my prices manageable for my customers. Because if the price too high, they'd simply go elsewhere.
If your whole business model is "extract the most profit possible" versus "maintain a sustainable and long-term profit", don't be surprised when things come crashing down around you. At the minute, the going is good. Are you sure that'll be the case in six months? A year?
Greed never ends well.
Landlords do the same. It’s called the market. You say you kept your customers prices in line to stop them going elsewhere. That’s exactly what every other market does you muppet, including landlords.
Sure, buddy. That's why there's a massive issue with rents outstripping wages, because landlords are so concerned with people going elsewhere
I’m lost by your “logic”. Are you claiming that your stated pricing mechanism is any different to landlords, and therefore that landlords routinely charge higher rent than the market rate, but still find tenants who choose them over cheaper options available elsewhere in the market, or did you just misunderstand what we were talking about?
No, you're right.
Because they can't go elsewhere.
I think they are confusing some landlords with decent human beings actually
You’re so close to understanding the problem. You’ve lost touch with reality. Housing should be a state controlled and regulated thing. It’s how we dragged ourselves out of the slums in the 50s. Progressive policies to make being able to LIVE in a HOME a fundamental right. Something that landlords like you feel is an entitlement for your investment which is what it is. Owning property is not a business. No investment is guaranteed returns. But for some reason people like yourself seem to think they’re entitled to it. What you want is a serfdom.
Think they reached that stage years ago nothing is affordable now.
Agreed, I think they reached peak a couple of years ago. No real material increases just inflation.
I think the real issue is that inflation and greed has caused everything apart from rent to go up (although rents also have been going up) and far extends any pay increases we are being sold yearly by the min wage rises and under inflation salary increases. Water bills and council tax is going to be a big one moving forwards along with tax increase means anyone barely getting by on min wage now will no doubt be unable to afford next year with the promised minimum wage increase. I heard most renters on min wage in studio flats will now need to look at moving into shared accom as studio flats will cost too much to them. Bit of a mess really.
I moved nearly 4 years ago and mercifully I haven't had a rent increase. This same property now would achieve about 500pcm more than I pay. I simply don't have that and truly don't know where I'd go. My circumstances are improving but I feel for those stuck every which way, that was me 6 months ago and it was eating me alive.
Same here, my rent hasn't changed in 6 years which is an absolute blessing, I dread to think what the market rate would be, maybe 75% more.
The real issue is rents are too high
Rents are high but not much in it for landlords after taxes/maintenance/all other expenses and outgoings so its not like they can just lower rents. I don't think many landlords are making much more than a isa pays right now and thats if they dont end up with an eviction for non paying tenant which can cost a years income. You will effectively have less rental properties and higher rents if you try to lower the rental profit to below no risk investments. I mean people have been saying rent is too high for decades but dont moan about everything else that has gone up/shrinkflation of products/bills and most importantly stagnant wage growth and opportunities. Everything is against anyone who is not wealthy.
Not much in it for landlords except having the mortgage paid off? Anything else should be considered a bonus.
If you think no one has been moaning about shrinkflation and stagnant wages I don’t know where you’ve been! :)
Most landlords have mortgages that are not paid off again reasons why rent wont be lowered pretty much ever. Interestingly most rental yields in uk are around 4.15% meaning the return on investment is actually very poor right now and landlords are realising this to get out altogether. All this leads to less property and more demand in rent which ultimately leads to higher rent again unfortunately.
The whole fiat system is designed to benefit the rich and keep the poor from getting rich . Money makes money as they say .
I think only hmo is the only thing really worth investing in now which is worrying for anyone needing family homes in the rental market.
If nothing is affordable then it won’t get let.
“I can’t afford it” is not the same thing.
We have a huge shortfall in housing, until we build more prices will keep going up and properties will keep being divided.
What regulatory changes are increasing supply ?
Puzzled
I presume it means, regulatory changes that reduced supply have settled down. Rather than anything good happening to increase supply.
Strange .. the renters rights bill is still to come. we don’t know how long it would take to recover a property when a tenant stops paying the rent under the new system
I'll send this to my landlord the next time he tries to raise the rent.
Haha, it's worth a try! However, I imagine the landlord's estate agent discussing their list of prospective tenants who may pay more might outweigh it.
Just out of curiosity, how long does it take to evict a tenant who refuses to leave?
It depends why they are being evicted.
Your question does outline why my last comment was more wrong than right, landlords hate evicting tenants it is time consuming and costly.
Yup. It's always worth working with someone who's a good tenant; maybe you won't get the best profit margin, but a reliable 20% profit is a LOT better than an unpredictable 50%.
And that is an issue. If evictions were fast and destroying the property had actual consequences, LLs would rent to people that might need to be evicted. As it stands, that is too big of a risk.
At a minimum 2 months, depending how compliant and on top of regulatory requirements the landlord/agent were during the tenancy
Supply and demand! Demand is growing. Supply is not. Do the maths
God, I hope.
I'm renting a 2 bed apartment just outside London for 1900 per month. Supposedly that was a "reduced" price. I will be very surprised if I'm not hit with an increase this year. The question is, by how much...
Waiting too. They just increase it because they can. Every year. And salary has not increased in 3 years. Most people I know are in the same boat.
2 Bedroom house with a downstairs bathroom and small garden at the top of my road is on the market for £1,250/pcm, It's a mid-range area and they're trying to get near the national average rent price, same property pre-Covid (A year or so before the outbreak) coast £850/pcm.
I think they have further to go up as the 5% stamp duty section 24 and what is generally mom and pop buisness’s be made out yo be evil villains which they are not. Will staton people entering the market as will everyone coming out of their low intrest deals snd having a house thats no longer visble. Its funny been into property for 20 years never met a bad landlord. Met plenty of bad tenants trashing places not paying decending in drugs and alchol and all the aggro with the neighbours that causes . I must be unlucky because according to the BBC Guardian LBC radio its only landlords that are evil.
When grown adults have to house share with 3/4 others I think rents were unaffordable years ago.
To landlords that's just an opportunity, not a warning sign.
If there is anything is to go by - don't listen to BoE forcasts they haven't got a scooby do
Sons have rental properties- both moved abroad. Places are in areas with lots of wealthy overseas students and thriving tech businesses or big car industry centres with lots of overseas professionals. Not London.
A number of landlords have sold up so competition fierce. Going rate seems to be increasing by 5-10% every six months or so.
Is that sustainable? When salaries have been stagnant for years? Yes increase supply, but 5-10% is breaking point for most people. And many can’t leave the more expensive areas (cities), because there are no jobs. And so you stay, and your rent becomes a larger proportion of your income each year. Housing insecurity is one of the biggest problems in this country right now. If people knew they could stay somewhere for 10 years, and have reasonable rent increases, they’d spend a lot more. More social housing.
Local market. Lots subsidised by companies plus wealthy students wearing really expensive designer gear don't mind. The rentals are really good quality places in very good nick.
The huge issues in London are driven by population increase I think- at least 2m in the recent past. It's just not the same across the whole country.
Labour can't just snap fingers and build huge amounts- they're now not going to allow councils to sell social housing at the same time they want councils to use sales income to build more. Durr!
At the same time, increase taxes such as NI on builders and...they'll cut back? Oops. Building trades mags full of medium sized builders going bust.
Really? Rents have gone up. I just had a look in my local area and 3 bed properties are going for 2,400 - 2,750. Nothing done to them
They’ve gone up over £300 since I last checked a few weeks back
Totally normal amount to go up by… this country is becoming a total joke. What are people supposed to do?
Buy property with the increased profits from their properties.
Oh, you don't own property?
What have you been doing with your life?
I’ve been actually working and contributing to the economy in a more useful and real way, rather than increasing the cost of a family’s rent every 12 months by 10% and sitting and wanking at home all day.
I am a successful businessman, well-respected in the community for my cool car and nice suits.
It's not my fault the feckless underclass are ripe for the picking.
It's natural justice. I am superior and therefore I own the necessary stuff of life. If others don't then they need to work on improving themselves.
Until then, they're just cattle for market.
Ah it is rage bait. Boring.
Ah come on, I was having a bit of fun at landlords' expense.
You were right first time :)
Too early for my brain to start working 😆 everyone is an opp here
Small landlords are the backbone of the nation!
I love winding them up.
😂
Clearly rage bait of some kind. Not doing much for the image of landlords here…
Someone I worked for on a job had his long term tennant move out, he was charging her £550 a pmonth for a run down shit box, on the advice of his agent he raised the rent to £850 pm...
So far ha has had 3 tennants and none of them left the house in good order like the one he lost.
I laughed my fucking arse off. Greedy fucking scumbag.
Not saying it's a good thing, but he's wrong as usual.
Unless the government stop importing hundreds of thousands of people a year, and reduce costs on landlords (more likely they will do the opposite) they will continue to rise.
You can decrease mortgage rates. Increase supplies. Deport people and close the gates. Rents will...still go up. It's a business. Landlords won't decrease rents when they're getting fatter off it. So come off it and don't make landlords out to be kind and righteous people when most are looking to squeeze blood from a stone.
I think they will come down anyway (rates) not that they are set by government. As for supply you can't outbuild a million extra people a year mate, no matter who's paying.
And I'm not making out landlords to be anything, just stating some economics. Demand goes up, prices go up. Labour and materials go up prices go up, expenses go up, prices go up....
This will continue, I'm not saying its a good thing at all.
It's a market, not a cartel. Rental prices simply don't keep rising in markets where housing supply increases are large enough, and there's data to back that up from housing markets in the USA.
The problem for the UK is that we don't have the building industry these days to cope with that scale of housebuilding, and even if we did, we have too many NIMBYs that stall out even small developments, when we do build, we don't build enough dense residential, and the idea of building on greenbelt makes us collectively faint over the fate of the hedgehogs and badgers.
In the meantime things just get worse for the people at the bottom of the pile.
> Landlords won't decrease rents when they're getting fatter off it.
True, but in your ignoring the competition of more rentals in the market. If i want to avoid "time on market" and get quick occupancy, i lower rent compared to others in the area. Its standard practice.
The next guy does the same, and so forth, and so forth. The guys sticking it out at higher rents stay on the market until their agent phones them up and says "you got to lower the asking price".
Fortunately that will never happen.
What won't?
You made a comment implying that nothing will change on the demand side, unless the government changes our open border policy.
Fortunately that will never happen.
Oh right, I pretty much said that too "likely the opposite".
Not that I think that is in any way fortunate.
The government is “importing people”? What does that mean? Or are you just a racist?
It means exactly what it says and what years of statistics show.
It's not controversial. Or debatable.
Those they are importing comes from all races, which is totally irrelevant to the overall number or their housing needs I'm afraid.
Try again.
> The government is “importing people”
Boris Johnson popped up the other day, random youtuber interviewer and he said that he had to - as petrol stations coudnt find people to work there.
I remember it as standing out, as he was against imigratnts and in the manifesto to cut numbers - if i recall.
Rent being always at the peak of affordability is just an efficient market
That.. makes absolutely no sense at all, you are describing what happens in a monopoly (etc), which is the complete opposite of an efficient market
Has to be satire
Shhh! Don’t talk about economics.
I truly and dearly hope you're just being as satirical as the parent comment, Landlord
this comment section has been vile to read tbh.
Instead of thinking thats it, tenants have been milked to their limit most landlords now trying to think of ways to make more money beyond the upper threshold.
so many comments thinking positively of ramming multiple families in a super HMO is why everyone absolutely despises landlords.
So much greed in here, so many not happy making money, they need to make ALL the money possible.
Wrong subreddit, your looking for /r/charities
it is attitudes like yours that will eventually have the rental industry regulated out of business btw
this attitude of such utter complete greed will eventually destroy BTL.
simple minds make simple comparisons. exposed yourself.
I rent property and make nice profit, my tenants are not cows to milked dry however.
Er, y'all do understand what "affordability" means, right?
It's not that people will stop renting. It's that people will have to make choices between "paying rent" or "paying for essentials".
But hey! Don't worry, the rent can keep going up 10% every 12 months, because extracting about the most money possible is the only thing that matters.
They understand, the difference is your reading the thread from the surface level that rents are too high.
Landlords reading this know that costs are increasing across the board—mantinance, management, insurance, taxes, regulatory expenses, and finance costs all continue to rise. We are nearing a peak in affordability, which could lead to unprofitability - if landlords can't raise rents enough to cover their expenses. It also heightens the risk of default, especially if tenants prioritize basic needs like food over rent.
That's kinda the point, isn't it.
This is why property as an investment is a shitty plan. Investments can go up or down; I've lost hundreds to the stock market before, thousands to bad business decisions.
But when my Investments fail, nobody suffers but me. When my bad business decisions cost thousands, it's only my wallet it hurts. Landlords increase the rent to maintain profitability, and that means the people who need to live there can't afford it. From both sides, it's unaffordable
Providing housing for those who cannot or do not wish to buy is an essential part of a balanced housing mix. I'm unclear about your point—are you suggesting that successive governments have negatively impacted the private rental market? Then yes, sure.
lol 'providing housing' - give it a rest. You mean 'making money'
> Landlords increase the rent to maintain profitability,
This doesn't really make sense. 60% of BTLs are mortgage free.
Price is set by marginal supply cost in every market. Google it.
The marginal cost is regularly above the price in landlordism. Landlords go into it for all different reasons. I was making a loss on a property I owned with a 75% LTV mortgage, didn't bother me.
You can choose to sell your product below the value if you wish. That is your choice.
I’m not sure you understand what I wrote or even whether you agree with me or not, but I think it’s safe to assume that you haven’t gone to the trouble to understand what marginal cost economics are and how the relate to free market pricing.
In the interest of humouring your post, in your stated context:
Define “loss”
Expenses exceeded revenues. If you look at some areas of east london (houses) with 75% IO BTL mortgages, they'd be losing money vs rent.
Let's leave it. You seem to have an attitude issue.
Just waiting for you to tell me whether you are agreeing that marginal supply cost is what sets prices in demand driven markets or whether we need to start rewriting economic theory, that is all.
Simple yes/no should do it.
In a perfect market? Yes. I will admit to relying on my a level economics classes.
I'm not sure where all the aggression comes from though, so I think we can call it a day.
You think landlords don’t increase rents for more profit? Why else would they do it?
I only meant that some are very profitable, having been paid off long ago and some are currently heavily underwater. Demand is driving prices up but not every landlord makes money cashflow wise.
Landlord then complains he has nowhere to spend his money because everything shut down as no one had expendable money.
One man’s essentials are another man’s luxuries.
Like food and heating, right?
I’m pretty sure that people buy other stuff too. But I’ll stand corrected if you show me evidence that people are at the point where they buy nothing but food and heating. I’ll not be holding my breath.
Ah yes, the fake cost of living crisis and wage stagnation we’ve all pretending to be in for the past few years.
You do realise that it is possible to have both a cost of living crisis while people still buy things which aren’t essentials, right? There are plenty of people wasting money on stuff some consider luxury items, who still claim to be in the middle of a cost of living crisis. That is my point, and you are welcome deny it if you wish, but it stop. Humans don’t make rational choices all the time.
Have rents peaked?
No.
Everything this government has done so far will drive up the cost and risk of renting a property, so rents will go up or landlords will sell up, and if some doe sell then the there will be more competition for the properties that remain.
Labour wanted Star Trek, utopian space socialism, and started acting like it before bothering to invent the replicator.
Tea, Earl Grey, tepid.
“Rents have decreased”. Where the heck did you get this from? Read that first sentence again, price inflation has slowed further, with some instances of small decreases in rent. Country-wide statistics don’t care about your personal observations.
>Rental price inflation has slowed further with some instances of small decreases in rent.
The only way rents are coming down is if there are too many houses available.
Anyone see that happening any time soon?
Hello. Your quote says "rental price inflation has lessened" and then you commented "Prices are decreasing? News to me" or words to that effect. Inflation decreasing means that the rate of increases is less - prices are still going up, but the rate of increases is lower. If there is inflation, prices are going up.
Its a quote from Bank of England.
You are right the rate of rent increases has slowed, I guess I was distracted by the latter part "with some instances of small decreases in rent."
There's only so much blood you can get out of a stone I guess.
Everybody seems interested in talking about rents and landlords - in other words, talking about the effects of the problem - but very few seem interested in talking about the root cause; the crushing shortage of housing caused by NIMBYs and the planning system.
Want more houses? Then let more houses be built. Want lower prices? Fix the shortage.
> crushing shortage of housing caused by NIMBYs and the planning system.
Supply Side Issues and Demand Side Issues, do certainly play a part.
I don’t think we demolished a load of houses did we? Why do you think that supply is the cause?
Ever considered that demand might be a factor?
Stop blaming supply. Blame demand.
Most of the UK's housing stock was built in an era when it was perfectly normal for 3 generations of a family to live in a 4 bed house &c. So we're stuck with housing stock which was designed for a country of far fewer households. And, of course, nowadays people like more space. And he population is growing. Demand is a very real factor, but we're not getting those genies back in the bottle.
It should be no biggie, allowing housebuilding for the people who want houses. Demand for all kinds of other stuff has changed over time, but we don't compel people to eat spam, wear Dunlops, and borrow a rusting Austin off their neighbour. (If you took that stance then you would at least be consistent with your position on housebuilding).
But everybody's so desperate to defend the NIMBY system that we act like it's no big deal local government has a chokehold on housebuilding. Local officials have to play along with the NIMBYs who pretend that building another dozen homes on a brownfield site will have crushing effects on traffic / owls / newts / flood risk / local schools. So there's a shortage of housing, so housing is chronically expensive.
The thing about that genie, to which you refer, is that it isn’t a case of getting it back in the bottle at all. Once you acknowledge that the genies are the problem, maybe consider not letting a load more out of their bottles? Building more houses treats a symptom. Treat the cause.
Not where I invest, our management agency is advising us increase by 10%
What’s the benefit for you to increase the rent by 10% each year?
Profit of course, we buy properties to grow our portfolio. The more profit the more money we have to buy other properties and renovate them for other families
*for other families* *cough*
Well yes, we put houses that are un mortgageable back on the market.
For your own profit. If there was a way to do so without troublesome tenants, you'd do that.
Not sure what you’re asking, however, we generally don’t raise sent unless a tenant has moved out, then once it goes back on the market we will increase if the market demands it. Or if we have come to the end of our 2-year fix and the mortgage rates have gone up.
If we have a good family looking after the house and lived there a few years and we are covering mortgage payments and some profit each month I am risk-averse and would rather not risk a tenant moving out for an extra £50 a month.
However, sometimes rent does need to increase.
Fortunately, we have a portfolio, if we just had 1 or 2 homes we may be more inclined to earn more. But when you have multiple properties profit is fine. As long as the business is growing and being in money all good.
You have 4 properties, mate. Calm down, you're not Trump.
6 from yesterday, but why are we counting ?
True. It is a very general statement; variation in region must exist.
You mean the collapse has begun?
I dont get that message from this.
Y'all need to get day jobs and lower rent. ✌🏻
This is a community for Landlords. You can be anti-landlord in other places like /r/HousingUK/