Rent increase

[ditchman]

i know some of you boys are landlords........so a quick question.........

What is a reasonable %age increase in your rent ...this is the first increase ive had in 2 years and i pay my rent a year in advance........

i have been advised that as from Feb my rent will increase by 3 point 7 % ................

is this reasonable ?

cheers 

ditch

[Lloyd90]

Personally think it’s more about £ amount and what’s reasonable for the area. 
 

If you’re paying £1000 a month in Bristol, the next year it could easily be £1100-1200 which is a massive % jump but just the going market rate. 
 

3.7% increase seems pretty low / fair although don’t know the specifics. 

[ditchman]

1 minute ago, Lloyd90 said:

Personally think it’s more about £ amount and what’s reasonable for the area. 
 

If you’re paying £1000 a month in Bristol, the next year it could easily be £1100-1200 which is a massive % jump but just the going market rate. 
 

3.7% increase seems pretty low / fair although don’t know the specifics. 

works out at an extra 360 quid /year on a very well appointed 2 bed bungalow....

[Lloyd90]

4 minutes ago, ditchman said:

works out at an extra 360 quid /year on a very well appointed 2 bed bungalow....

Extra £30 a month. 
 

Seems pretty reasonable to me. But all depends on your local area rental market etc. 

If you’re already paying higher than local market rates then putting it up any amount won’t be very reasonable. 
 

If it’s compatible to local alternatives or cheaper then it’s fine.

[ditchman]

1 minute ago, Lloyd90 said:

Extra £30 a month. 
 

Seems pretty reasonable to me. But all depends on your local area rental market etc. 

If you’re already paying higher than local market rates then putting it up any amount won’t be very reasonable. 
 

If it’s compatible to local alternatives or cheaper then it’s fine.

Ta for the reply.........these type of properties are generally all the same price unless you are in a special area

[Dave at kelton]

Rather than look at a percentage increase I would go online and do a search for rental properties in your area and what they are on the market at. You can then compare monthly total rent with what you are being asked to pay.

[serrac]

In Scotland rent increases are capped at 3% which suggests free-market increases would be somewhat more than that.

[TOPGUN749]

Sounds like you have been paying £810 a month and it’s going up to £840 which is not high for most areas,and if the first rise in 2 years sounds very reasonable! The owners would probably prefer to have you as a responsible caring tenant than risk another one who would not respect the property and fall behind with payments.

[Vince Green]

It's about two things 

First how much would the landlord make if he sold the property and invested the money in something else? That's return on investment (ROI)

 as a guideline Coventry Building Society is offering 5.2% at the moment.

Thousands of landlords are just selling up and getting out of the rental business because the grass is greener elsewhere. 

Secondly, if the landlord has himself got a mortgage he is paying on the property how much has that gone up ?

[daveboy]

I know it sounds daft but if I have a really good tenant the increases tend to be less.

[amateur]

It looks very reasonable to me.

Below the RPI and the first increase in two years.

You are clearly a valued tenant.

 

Edited December 14, 2023 by amateur

[Northerner]

Seems more than reasonable to me. I've been in my current place (one bed and of terrace) for just over 4 years now and its been pretty much a 5% increase year on year. Although this year the land lord turned the increase down (I am 99% sure it was driven by the letting agency so they could get more money). I was worried he was going to sell but i met him the other week and it seems like what i am paying now sort of sits right with him as the market is crazy (i am in cornwall and it is 🙄). 

[ditchman]

i wont contest it this year....but if it goes up again next year......i will ..as i pay upfront the full ammont at the beginning of the rental year..(there is a reason forthis)...so it means the landlord/agency gets the use of my money where as i dont......

[ph5172]

ONS put the average increase at 6%. I know it’s all relative to the initial cost.

I'm not sure what the average increase was last year but let’s say you are  looking at nearly 2% a year which appears below average. 
 

As I said it’s all relative and you pay up front which is good security for your landlord and to me would be worth keeping you as a tenant. I would also bet you don’t give him any agro either. 
 

My friend has a tenant in a flat in Manchester that has been there 15 years or more. Paying below market rate but covering the requirements. He is happy as they cause no issues. Always pay on time and everything is covered, the tenant is happy as they know the market rates. They are not getting moved every 6-12 months and they get left alone to treat it as their own. 

Edited December 14, 2023 by ph5172

[billytheghillie]

36 minutes ago, amateur said:

It looks very reasonable to me.

Below the RPI and the first increase in two years.

You are clearly a valued tenant.

 

I would question that!

[amateur]

Just now, billytheghillie said:

I would question that!

I didn't say human being. 😄

[Mr.T]

1 hour ago, daveboy said:

I know it sounds daft but if I have a really good tenant the increases tend to be less.

That’s exactly what I do as well 👍

[clangerman]

sounds a fair enough rise but you could always don the sunday best wellies and baler twine belt to claim poverty with the land lord ditchy 

[Bigbob]

I would check out the waiting list for 2 bedroom bungalow in your area  , If there's a long list the owner could get rid of you and put new tenants in with a big price increase , Bungalows are always popular with the elderly 

[ShootingEgg]

On 14/12/2023 at 13:27, clangerman said:

sounds a fair enough rise but you could always don the sunday best wellies and baler twine belt to claim poverty with the land lord ditchy 

And then you put yourself in a position of landlord saying if you can't afford maybe look for something you can... That increase is perfectly fair and allowed. 2 years in so that's a 1.35% increase per year. 

If the landlord is a decent person have an honest conversation with them and try and agree a longer term at that rate. Do it before then having to try and barter a deal when your current one is about to lapse.

[oowee]

On 14/12/2023 at 10:19, Vince Green said:

It's about two things 

First how much would the landlord make if he sold the property and invested the money in something else? That's return on investment (ROI)

 as a guideline Coventry Building Society is offering 5.2% at the moment.

Thousands of landlords are just selling up and getting out of the rental business because the grass is greener elsewhere. 

Secondly, if the landlord has himself got a mortgage he is paying on the property how much has that gone up ?

Particularly with the cuts to cgt relief forcing landlords out of renting. The increases to stamp duty for buy to let have reduced the returns, reduced supply and in turn pushed up prices. No fault eviction laws coming in are no doubt the final straw for many. 

Without a corresponding increase in social housing, all no doubt designed to widen the gap between those that have and those that don't. 

 

[harrycatcat1]

18 hours ago, oowee said:

 No fault eviction laws coming in are no doubt the final straw for many. 

 

 

This 👍

[Vince Green]

The sad truth is that there is a mismatch between wagaes and rent in most areas of the country.

Plus a shortage of secure well paid 'proper jobs' that allow prospective tenants to pass the increasingly stringent credit checks

[armsid]

All the *proper jobs* for most people were lost when we joined the Common Market in the *70,s and influx of cheap unskilled workers our own refusing to work it is no surprising that the jobs get fewer and fewer when all the tech apprentice schools closed and recruits were sourced abroad instead of keeping it all inhouse hence low wages and because of demand high unsustainable rents / house prices. Look to France for examples of prices For £190k a farmhouse in 20 acres can be bought price here nearly £1mill.

Edited December 21, 2023 by armsid

[Mungler]

We under rent all our properties and have kept all the original tenants because:

1. There’s my business partner and I and so any extra rent is immediately split in two

2. then lose half in tax (in round numbers)

3. then factor in zero void periods, zero agents / letting fees and dealing with the unknown (and who knows who you could next be letting through your front door)

4. we got into property following rich dad poor dad; passive income, let it wash its face and put a little in the bank and see where we are on capital values in twenty years, ten years of which have passed in the blink of an eye and in that time we have made more in notional capital growth vs rental profit. 

Alas the Tory’s have torpedoed capital gains tax allowances, mortgage interest relief and now there’s the spectre of no fault evictions. 

We’re likely to pull stumps and sell up. We’ve been edging into commercial property via a SIPP.

Back to the original question, if your landlord is on the wrong side of a high mortgage interest rate and given market pressures, the rent is going to have to go up I’m afraid. That’s said, if you pay on the button and are low aggravation chances are there’s a deal in there to keep you as a long term tenant because your landlord will be reviewing everything (including 1-4 above).

Lastly, everything I’ve read about capital assets in a period of inflation says to hold the properties however it’s the current government that’s killed it for landlords (and in so doing has killed it for tenants with restrictive supply and high rents), and I can’t see a Labour government going any easier or residential landlords.

 

Edited December 21, 2023 by Mungler