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I don't want to scaremonger but the wording of this paragraph in the government's response to this consultation is interesting (which is resulting in S21 getting the chop) https://www.gov.uk/government/consultati...ted-sector
187. The Government does not support the introduction of rent controls to set the level of rent at the OUTSET of a tenancy. Historical evidence suggests that these woulddiscourage investment in the sector, and would lead to declining property standards as a result, which would not help landlords or tenants. Notwithstanding, the Government’s proposed approach will ensure that tenants cannot be effectively evicted through unreasonable and excessive rent increases......soooo keeping the door open for limiting rent rises during a tenancy - at the same time as making them indefinite. Who would have thought that would come from a Tory government.If you're someone that hasn't put up rents in a long time and they are now well below the local market rent I know what I'd be doing - even if S24 doesn't effect you - spending on MEES almost certainly will !
DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.
Anyone got a timescale on when we should do these things?
I have a family who have rented a house from me for £1000pcm for 10 years without a single rent increase. I could now get £1600pcm. I don't mind doing this through choice as I like them, but it would be a whole different ball game if that choice gets taken from me. A few of my other places will need significantly reassessing too in the very close future.
With the measures that this shower of S*** Govt are introducing the time to start rent increases is now. You'll get thanks from no one that you have kept rents down to the original level. This is the best Labour government we have ever had, they are lying, hypocritical, self serving A***holes.
I'd guess it will be about 2 years from now when it gets implemented - enough time so that they hope people will have forgotten - have an election and next government implements it.
But since rents can only be increase every 12 months and cam still be referred for rent assessment then the time to get on it is now - explaining to T the multitude of tax and legislation reasons why.
Guys - rent control will happen in some form . Just face the fact that we will be forced to offer more secure tenancies.
We have to face facts the investment part of landlording will go
Let me show you where I think we are going ....
My family had shows from the 1850 and generations of my family purchased a shop to sell tins of beans ect
the Property was not purchased as an investment, it was purchased to sell beans
I believe we are going down the same road - our beans will be yield
Yes the property will have a value and it will go up at some point
but I know where my business is, and that’s selling the beans
The beans will have some sort of price control and I think when it comes LHA data will be used to set a fair rent for all of usAgain, nothing is new it’s only we have short memory it’s all happens before
Just look at history for the clues ...
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
LHA rates (before they were frozen) - were set at 30% percentile of market rents in the defined broad market area.
(the measuring of which is supposed to exclude benefit tenants)So there would be a danger of circularity !
I think it’s almost certain there will be rent controls.
This all seems like the lead up to an announcement of a general election and the Conservatives are targeting those in rented accommodation.
'Rent controls' could, ironically, be inflationary for rents. When I let a property I do so at market rent. If the tenant conducts their tenancy well I leave the rent alone for 5 years. I know I'm not on my own here. If a tenant signs an agreement that stipulates that annual rent increases are limited to the RPI the tenant would expect and receive just this, I'm sure. There are very few services that maintain prices, ignoring inflation and higher costs the business has to endure itself. This should ensure that the PRS is no longer the exception.
Another own goal for the government, if it takes place. Or more accurately, the millions of people who struggle with today's levels of rent, never mind what they are likely to be following this, and other recent initiatives.
Very good point, I think on the whole it will be a positive thing. But like someone else mentioned if you have some people on very low rents, now's the time to up it. However I am sure there will be a caveat and a curve thrown in for good measure
most of my proprieties I only increase every 3 years, I will no do every year
I’ve never increased mine and one is way out so will have to increase , lovely tenants too.
wonder when this will come in , is everyone going to increase now if rents are low.