Scottish rent freeze is ‘unravelling’

Reply to the comment left by JB at 13/09/2022 - 11:29
well Queen Krankie thinks so but not sure how much notice was given to LL's beforehand. There must have been rumblings over the possibility before. She didn't surely just wake up and think 'great idea' then boom its in place???

I have similar problem.
Not increased many for years.

But will if LHA increases next April as expected, but only by the LHA amount, so the tenants top up they pay theirself doesn't increase.
However if rent freeze happens in UK, my super low rents remain super low & I was already looking after tenants, & now can't get my just reward after receiving low for many years.

So I too may just well increase every year which then hurts tenants long term, as we just don't know what will happen next.

I've just had girl buy a house. She been with me about 15 years, 10 years in this 3 bed paying £565.
Another existing tenant of mine in 2 bed paying £622 is now having the 3 bed & is overjoyed she's got one with me, wasn't risking going to any other Landlord who may sell on her & we've agreed £850 rent & to not increase for 5 years. She's buzzing.

Her 2 bed is going to another existing tenant of mine in a 1 bed house with a baby. She will be paying £725 for the 2 bed. Point is, many of us are already looking after existing tenants, & we can charge MUCH more but don't. But Govt daft policies are pushing us to more looking after ourselves.

I'm gonna' get 4k+ per year more just on two house swaps. Could have got that much sooner but decided to look after long term tenants. Govt don't see this.

It certainly appears that this particular minister has an intense dislike of landlords, comments like he respects the ones who don't increase rents and the ones who increased rents are disreputable.
As a policy we will increase our rents on a regular basis however I fully respect landlords who choose to keep rents the same. It's your property that's entirely your decision. Unfortunately, it looks like the direction of travel is so anti landlord that many smaller landlords will eventually leave the sector. They are however being replaced by larger more corporate landlords (a bit like me!) who will look at return on investment. If a property isn't preforming then it's dealt with, that could be by refurbishing or increasing rents or by disposal. Fortunately, there aren't that many like us and there are many who are genuinely trying to be be nice and look after tenants that they have known for a long time. Whilst governments say they want more 'professional' landlords (I don't really know what the definition is) they will end with totally rational bean counters like us, and we aren't trying to do anyone a favour!

Reply to the comment left by Michael Johnson - Amzac Estates at 13/09/2022 - 18:03
"They are however being replaced by larger more corporate landlords"

No they aren't.

The number of corporate landlords entering the market is comparatively tiny.

Reply to the comment left by Neilanglim at 13/09/2022 - 09:19
My sentiments exactly.

Hi. The comment left about "rents under market norm(?)" I understand can be risky. I was subjected to a tax investigation over a 18 month period and any "cheap rents" in the eyes of the friendly investigators is suspicious. Because, unless you have guessed, it implies a cash is part of the deal with your tenants? Maybe?

Reply to the comment left by Neilanglim at 13/09/2022 - 09:19
Not sure freezing interest on PRS mortgages is a good idea. Great for those with bug mortgages on their stock but no help at all to those if us that don't have mortgages. This woukd be an unfair bias. It wouldn't happen anyway. The banks are too powerful, they just wouldn't play ball.

Rent freeze is unconstitutional. No windfall taxes on oil companies in the UK but rest of EU does this. Now they have excessive war profits. My rents have not even gone up whilst I have energy bills included for my two HMOs. Why can my salary been frozen and not go up with inflation like civil servants salaries ? Are they also going to freeze my mortgage ? Hands off my property and my income government! You must build more houses and let less economic refugees in. Stop blaming and bullying us landlords or you will after a decade of turning the thumbscrews get bricks through the windows everywhere ! Enough is enough. Stupid covid 60bn track n trave 45bn covid loan fraud. Overborrowing Sunak and Boris. causing inflation. Rent goes up half of inflation only and here they are ripping us off again. Most of the rent rise is caused by government EPC improvements for landlords only... EICR etc endless certificates renewals faster add up and its a fortune in costs, tenant fee ban means landlords pay all costs now, licence fee extortion by councils... Greenwich 2014...54 licenses... 2022 1800 licenses... at thousands each plus time plus cost of advisors... no evictions anymore... must accept pets extra cost..extra punitive stamp duty... extra capital gains tax..endless extra admin work... the list keeps going... language used by government is discriminatory and bullying against landlords.... tenants emboldened and bullying... whipped up by government making landlords criminals especiallyin the eyes of young people... stop giving us pain and stress government it is unbearable!! Landlords cannot defend themselves or say anything as all the RISK is in their court don't you understand ?? Respect please for hardworking tiny landlords=96% of landlords. Last but not least.... Nice landlords have not increased much and get frozen and penalised for being nice and you are causing landlords outside Scotland to increase asap with your Scottish stupid illegal communist expropriation.

Reply to the comment left by Monty Bodkin at 13/09/2022 - 20:08
Apologies Monty, I didn’t explain correctly, by larger more corporate landlords I don’t mean legal and general, Lloyds bank, John Lewis etc although they are definitely moving into the market.
I mean landlords that have larger portfolios that have 50, 100, 200 plus properties not smaller buy to let individuals. These types of landlords aren’t as prone to sentiments they are much more likely to raise rents faster as they have larger operational costs. Either way the smaller landlord will get reduced over time as I think the legislation will become overwhelming

Reply to the comment left by Monty Bodkin at 13/09/2022 - 20:08
there may be tiny however they have huge pockets and a conveyor belt of acquisitions to gather.

Seems to me that this is an effort to attack small caring landlords and then pass the properties onto the big boys having shaken the tree of the once unprofitable ones who don't use spare room to rent them.

10 big ones buying 100s per year is substantial and the Americans are doing it in America and the next place to rip off is the UK