City mayors call for rent freeze
Of course, idiocy, now fuck off.
as well as a survey conducted last year by the campaign group Generation Rent which suggested only 11% of landlords who had raised rates cited their own rising mortgage costs as a motivation.
D’yre mean that rising interest rates do not feed through into rent? Rents are not set on a cost plus basis but on a supply and demand one? But, but, that would mean the Tuber is wrong when he says that rising interest rates will feed through into higher rents. And that can’t be true. T Solanum is never wrong!
A survey conducted last year
Depending on exactly when last year, rising interest rates either weren’t a thing or had not fed through into landlords’ costs.
On the other hand… Replacing perfectly safe and legal electrics with stuff that complies with this week’s standards was a big expense that had to come from somewhere, as did bringing properties up to an E efficiency rating with the prospect of having to get a C by 2025. Oh, and covering the tenancy, background check, etc. fees that agents are no longer allowed to charge applicants. And the inventory fees. And the right-to-rent fees. These are the costs that hit landlords in 2021/22, all forced by the government at the whim of the likes of Generation Rent.
Mortgage costs are the 2023/24 part of the landlord shafting. One rental property sold last autumn, one in the process of selling — both to owner-occupiers — this change in supply will, of course, be Really Helpful to renters. The third property can’t be sold at the moment because of cladding (again, thank you government). That one comes off its 2% fix at the end of the month and goes onto 5.45%, putting interest costs up by a non-tax-deductible £260 per month on a sub 50% LTV mortgage, meaning that once agents and government are paid, rent would have to go up by £370 per month to cover it.
“discourage investment, lead to declining property standards and may encourage illegal subletting.”
The only point I’d disagree with on this one is to say, ‘would encourage illegal subletting’.
“@Matt
putting interest costs up by a non-tax-deductible £260 per month”
Well, there is a tax relief for interest but it is limited to 20%. meaning (if you are a higher rate taxpayer) tax charged at 40% and relief at 20% and meaning that as interest is no longer deducted from profits, you are more likely to be a higher rate taxpayer.
Considering that many landlords have other incomes, it’s very easy for this to bite. I have one client who has 22 properties and didn’t actual make an accounts profit last year and is still paying c£14k tax.
But cheer up, when you sell the property, you’ll pay a higher rate of CGT than for other assets and be expected to pay that tax anything up to 19 months earlier than if you sold any other asset. Yay.
These government rule changes can’t possibly have any unintended consequences like landlords getting fed up and leaving the market. No sirree.
“These government rule changes can’t possibly have any unintended consequences like landlords getting fed up and leaving the market. No sirree.”
Yep
Down in Cornwall the lefties have been demonising private landlords for years
Now we have the prospect of most of them selling up or going into holiday lets/AirBnB
I would be surprised if they dont make more money – charges higher for less hassle and no vampire letting agents and little property damage
Mind you renters will be turfed out of those properties, luckily we have had a surge in social housing……….er