Why can’t the media understand how inflation affects rent rises?

I was disappointed upon coming to the U.K to find that the Financial Times was left leaning.

In general journalists are left leaning, and if they are only given a short time to produce articles then their biases will appear in the gaps.

If you want a more balanced approach to your news, try CItyAM (Free but not much content) or the Telegraph.

Well said.

It seems the media ignores costs like inflation, mortgage, epc updates, repairs, agency fees, insurance - all going up.

I am on less than 3% net profit (less tax) and that is with my own equity in the properties! This means that I am subsidising the rent.

I can only see costs and rents go up.

Think where these journalists are both physically and metaphorically coming from:

1. University- the "petri- dish" of the left wing with it's Marxist anti landlord policies which has infiltrated not just our educational institutions but all others. The police, judiciary, civil service, local authorities etc. The embryonic starting point of political and social influence for many indoctrinated recruits.

2. Envy. A lot of journalists are thirty somethings who think baby boomer landlords had it easy and have gobbled up all the property leaving them to rent. When not building enough houses and uncontrolled immigration combined is the real cause. Not landlords.

3. Selling sensationalism. A story doesn't sell unless it demonises one of it's angles. Like landlords.

Add all these together and you will never get an objective view from any newspaper with a political slant of any nature. Particularly one with a left wing bias. Why let the facts get in the way of an opportunity to beat up landlords?

On "Replacing these with big corporate landlords.....will be wanting far higher rent from tenants than small private landlords...who.....are – as statistics prove – very likely to not increase rent for good, longstanding tenants."

I agree with this. Most small landlords are doing something else and cannot offset the cost of a single BTL against other properties so void periods are a problem for them. And so they tend to keep rents slightly lower to encourage long term tenancies.

Large incorporated landlords have lawyers, know the rules on eviction, can offset the cost of refurbishment against other lets, know how to maximise pricing and can offset the cost of churn against the rest of their portfolio. Small landlords provide competition and choice in the marketplace.

Driving small landlords out drives rents up.

Preaching to the converted although I don't rate either of those papers, but each to their own. Most people don't understand inflation generally and journos have an agenda to push anyway - another reason why people are migrating away from mainstream media with its biases.

Reply to the comment left by Fed Up Landlord at 27/03/2024 - 10:14
You didn't mention the biggest contributor to landlord vilification... Shelter. Given they don't actually house any homeless people, their raison d'être is taxpayer-funded lobbying.

I hadn't heard that Blackrock were going to invest in BTL. But it wouldn't surprise me given that housing is regarded as a solid long term investment:

https://www.theguardian.com/money/2024/mar/26/little-planning-for-looming-retirement-crisis-blackrock-chief-warns

But if that's true then companies like Blackrock, the world's largest asset manager, are going to be focused on return on total assets or return on capital employed. They may tick all the compliance boxes but they will drive rents up.

So yes, any tenants out there sympathising with Shelter and thinking that policies bashing small landlords (the majority) are going to help them....think again...careful what you vote for. Small landlords provide competition.

Let's not forget the cost of loans has tripled in 18 months, and these loans are no longer offset against tax. We also now paying more tax. I run an HMO and my energy and my loan costs are through the roof, but also cleaning and maintenance etc, the cost of living hits the landlord hard, and we cannot recover the full increases, I have asked my tenants to contribute half, the remainder is coming from my pocket.

It seems to me that the drive to get rid of the PRS is a bit like getting rid of cash

I can only assume that the article was written by a renter.