Government admits Renters’ Rights Bill could drive rent increases

Reply to the comment left by Jo Westlake at 03/12/2024 - 10:50
They have no clue.

In response to the Telegraph, the Ministry of Housing, Communities and Local Government, claim landlords are less likely to raise rents if they have a long-term tenant.

A Ministry of Housing, Communities and Local Government spokesman told The Telegraph,: “The evidence shows that landlords value good tenants – and are therefore less likely to raise rents for sitting tenants.

It's the new tenants that are already on the new high rents, so no need to increase as that high rent has just started. The long term tenants paying too cheap rent now have to be increased. We learn't this when Selective Licensing came in and all of a sudden tenants were getting rent increases that not had 'em for years.

And Jo Westlake says the same.

Reply to the comment left by Ian Narbeth at 03/12/2024 - 11:47
This is what happened in Scotland with the Rent increase caps. Landlords charged top whack on new tenancies as they needed to to play catch up & to prepare for not putting up to required levels in the future.

Reply to the comment left by Smallfry at 03/12/2024 - 12:58
This would push rents up by itself.
I can imagine many LLs putting rents up well above the current market rate to allow for the time difference between adjudication and downwards adjustment by tribunal.
I'd be interested to know how market rate will be determined in these circumstances...

Reply to the comment left by Raz at 03/12/2024 - 13:57
I'm assuming that the tribunal will rule on the market rate at the time the increase was proposed so we will always be behind the market rate by the amount of time the tribunal takes to decide, who knows just how long that will be ?
To be honest I have rarely increased rents for an existing tenancy and never above inflation but I guess I'll have to reconsider this

I wonder if tenant value good landlords? Maybe they’d be happy to pay higher rents.

If my tenants work with me to keep costs down, rents are lower.

However, government interference continues to force my rents higher. I’m already drafting the rent review letter and Labour get a mention, as do the Conservatives. My tenants will know why their rents are rising.

Reply to the comment left by John Grefe at 03/12/2024 - 10:27
This is correct: If, like the majority of landlords, you are a small portfolio landlord who can't incorporate but are mortgaged then the effect of section 24 (stopping you offsetting interest costs against rents) is that you have to put the rent up even more. Or if you cannot raise the rent enough you have to sell, perhaps to a larger incorporated landlord who already knows how to maximise rents and is less affected by void periods, therefore having less incentive to hold rents down for long-term tenants.

This week a number of media outlets including the BBC have reported that councils have been going back to Angela Rayner telling her that her housing targets are nonsense:

https://www.bbc.co.uk/news/articles/crk4y05vp61o

If you want to increase the supply of housing you have to have both builders that can build them and investors that can pay for them. Only a fool would think that in a market where there is a shortage of supply it makes sense to penalise people trying to invest in it.

Tenants who want some choice (i.e. freedom) over where they live and organisations claiming to represent them need to wake up to the fact that they are being penalised by political dogma, not by landlords.

My tenants value me. They'd still crap on me though if get better offer. But they know I want to sell & aren't selling cause trying to keep them safe. And they've seen all their mates in Nottm Hostels for years.

On rents higher, here is a snippet of many texts I have. Some may agree or not.

XXX, I really am trying to keep your rent low and mindful of u and most my others aren't on great incomes.
I can do your repairs, but I won't be able to keep your rent this low and as low as it has been last few years, as the builders haven't lowered their costs for me or u. So will have to do what other Landlords do every year with inflation & put your rent up to market levels instead of £2400 per year below others.
I personally wouldn't ask if I was paying that low a rent cause we all know it don't pay for 2024 repairs.
Another way of putting it:
It's hard paying 2024 repairs prices when only receiving 2020 rents. I know u don't ask for a lot, but I tell everyone, try and get stuff done yourself if paying £2400 a year less than other rents. Cause that builder don't do stuff at 2020 prices just cause I look after people.
Hard I know, but when people say I can't afford that repair, I say £200 one off repairs are cheaper than £2,400 per year in extra rent.
I'm sure tenants with other Landlords would love that choice to pay cheap rent and do their own stuff. I suffer when u give me the house back as u don't do all the stuff that would have been done on market rent and then I've got to pay for it all with not having had the rent in to pay for it.
Blame Council Govt and inflation.

Poppyflop does not care if section 13 is challenged as it will be rent control via the back door as tribunals will be overloaded and decisions will even take a year so no rent increase for LLs for possibly 2 years. However government narrative will be look how the RRB slowed down rent increases- ie RRB has been a success for tenants!

He will never repeal section 24 as he does not like over geared LLs and thinks they should sell as you may have read in the impact assessment!

RRB may become a success for tenants in the government view as every increase may go through tribunals. However, in the long run, that is within 5 years, when the landlords' mortgage fixed rates comes to an end, they may want empty property to sell or move in, themselves. The government still is burrowing their head in the sand and not admitting that the selling of properties have started already. It will be another 3 to 5 years before they see that a lot of tenants will not find properties and government may need to agree to encampments in different areas for the ex tenants to live. That is when the tenants will see the true effects of Tory and labour policies. They will be hit with no housing available. This can only happen if the landlords sell their properties to the owner occupiers. There may not be sufficient owner occupiers to purchase so many properties.