Jump to content


ebuild is sad to announce its closure - it has become too time and resource intensive to develop, manage and maintain.

However, ebuild will remain on-line in archive mode (ie no posting facilties) for several weeks so that users can use it as an information resource.

Soaring Private Rents !


  • Please log in to reply
16 replies to this topic

#1 ferdinand

ferdinand

    Advanced Member

  • Member Blogger
  • PipPipPipPip
  • 1,031 posts

Posted 26 November 2015 - 03:10 PM

There is an interesting thread over on Property 118 explaining why a lot of LLs who don't put rents up during a tenancy are about to start doing so:

Quote

There is significant anecdotal evidence that most landlords outside London do not increase rents until there is a change of tenancy.

Property118 would like to investigate this.

With upward pressure on costs of compliance as well as the new tax changes it is likely that landlords will abandon this practice , but we would like to hear from landlords who have had the same tenants in a property for three or more years and not increased rents.

http://www.property1...charging/82183/

A good example of Mr O cutting off his nose to spite his face.

Ferdinand

Edited by ferdinand, 26 November 2015 - 03:10 PM.


#2 sketch3d

sketch3d

    Regular Member

  • Members
  • PipPipPip
  • 376 posts
  • LocationMilton Keynes

Posted 26 November 2015 - 04:06 PM

Yet there are so many tenants/tenant groups who believe rents wont go any higher. Myself and many other local Landlords have already started raising rents, simply never bothered to put them up while a tenant was in situ. Now the rents have to go up to pay Gordon Osbourne expenses bills.

#3 ProDave

ProDave

    Self build in the Highlands

  • Moderators
  • 5,960 posts
  • LocationScottish Highlands

Posted 26 November 2015 - 04:15 PM

Landlords are indeed being squeezed in all directions.

The new rules they are facing are mandatory fitting of mains powered smoke, heat and CO alarms, mandatory electrical and PAT testing, and Gas testing.

New rules in the pipeline are Legionaires testing of the water system, and at some point you will only be able to let a property with an EPC of E or better, so band F or G properties will have to be updated, or stop being rented.

Then there's restricting mortgage interest to basic rate relief, and the new extra 3% stamp duty on purchase. I also read somewhere that upon sale, capital gains tax will have to be paid within 30 days (currently it can be up to almost 2 years before you have to pay it, we have some that won't be due for payment until January 2017)

As I said before I can't help thinking I'm glad to no longer be a landlord. It has certainly got me thinking whether to return to that later or not.

The trouble with this sort of tinkering, is it can often have unexpected consequences. The worst case scenario I forsee is a mini boom as landlords buy property before next April, followed by a house market crash. That seriously will not help anybody.

#4 notnickclegg

notnickclegg

    Advanced Member

  • Members
  • PipPipPipPip
  • 1,126 posts
  • LocationHampshire/Surrey Borders

Posted 26 November 2015 - 04:21 PM

View PostProDave, on 26 November 2015 - 04:15 PM, said:

The new rules they are facing are ... mandatory electrical and PAT testing, and Gas testing.

Given the state of the 5hithole we've just moved out of and the landlord's utter disinterest in even basic maintenance, I can't say I disagree with these being made mandatory.

Jack

#5 ProDave

ProDave

    Self build in the Highlands

  • Moderators
  • 5,960 posts
  • LocationScottish Highlands

Posted 26 November 2015 - 04:30 PM

View Postnotnickclegg, on 26 November 2015 - 04:21 PM, said:

Given the state of the 5hithole we've just moved out of and the landlord's utter disinterest in even basic maintenance, I can't say I disagree with these being made mandatory.

Jack
I have mixed opinions on that.

Yes I agree with electrical testing etc, but legionairs testing? Can anyone point me to a single case of Legionairs that came from the water sustem in a domestic dwelling?

As to palace or cess pit. I have seen plenty of decent houses turned into a cess pit by the tenants.

#6 sketch3d

sketch3d

    Regular Member

  • Members
  • PipPipPip
  • 376 posts
  • LocationMilton Keynes

Posted 26 November 2015 - 04:33 PM

Smoke and CO detectors have only just become mandatory, however most landlords fitted them anyhow. (At least the ones I know)
Gas inspections have been the norm for as long as I can remember.
I don't provide portable appliances so PAT testing isn't an issue and the houses are checked every so often by the sparky anyhow to ensure they're safe.
Legionnaires risk assessments are a bit of an odd one for residential properties, but easy enough to do yourself. Property 118 have a scheme where they register them which is good if you're ever pulled up.
The only property we have which is boarder line on the EPC we plan to dispose of anyhow, I think our tenants would like to buy it.

#7 gravelld

gravelld

    Regular Member

  • Members
  • PipPipPip
  • 655 posts

Posted 26 November 2015 - 04:54 PM

View PostProDave, on 26 November 2015 - 04:15 PM, said:

Landlords are indeed being squeezed in all directions.
Look, at which point did you look at being a landlord and think "that seems easy!"? I've always avoided residential real estate for exactly these reasons.

Far better 'homes' (sorry) for your money.

#8 sketch3d

sketch3d

    Regular Member

  • Members
  • PipPipPip
  • 376 posts
  • LocationMilton Keynes

Posted 26 November 2015 - 05:15 PM

Some get into property because that is what we know. I don't know much about the stock market etc. and pensions, what an unsafe bet that is.

#9 Nickfromwales

Nickfromwales

    Short cuts take three times longer.....Fact

  • Moderators
  • 8,182 posts
  • LocationSouth Wales

Posted 26 November 2015 - 05:36 PM

View Postnotnickclegg, on 26 November 2015 - 04:21 PM, said:



Given the state of the 5hithole we've just moved out of and the landlord's utter disinterest in even basic maintenance, I can't say I disagree with these being made mandatory.

Jack
+1
;)

#10 gravelld

gravelld

    Regular Member

  • Members
  • PipPipPip
  • 655 posts

Posted 26 November 2015 - 05:42 PM

View Postsketch3d, on 26 November 2015 - 05:15 PM, said:

Some get into property because that is what we know. I don't know much about the stock market etc. and pensions, what an unsafe bet that is.
I don't really think that's a particularly good reason. No-one is born knowing about property investment. Similar with the stock market, or bonds, or whatever. There's always a wealth of information out there to learn about these concepts. Put another way, ignorance is not an excuse.

#11 ProDave

ProDave

    Self build in the Highlands

  • Moderators
  • 5,960 posts
  • LocationScottish Highlands

Posted 26 November 2015 - 05:45 PM

View Postgravelld, on 26 November 2015 - 04:54 PM, said:

Look, at which point did you look at being a landlord and think "that seems easy!"?
12 years ago when we first moved here. Turned out to be a good move due more to luck than judgement.

It is not necessarily "easy", it is, in spite of what some think, "work". Properties with tenants need repairs and constant redecoration. We had good tenants and bloody awful tenants. It proved worth it because of the capital appreciation. In a market where that is not happening, I would not do it just for the rental yield.

#12 Alphonsox

Alphonsox

    Advanced Member

  • Members
  • PipPipPipPip
  • 1,495 posts
  • LocationCounty Down, NI and Forest of Dean, England

Posted 26 November 2015 - 06:00 PM

I used to be a landlord - I found it far too much like hard work. I still invest in property but via shares in Taylor Wimpy, Persimmon and a few others. This seems a lot easier.

#13 notnickclegg

notnickclegg

    Advanced Member

  • Members
  • PipPipPipPip
  • 1,126 posts
  • LocationHampshire/Surrey Borders

Posted 26 November 2015 - 06:05 PM

View PostProDave, on 26 November 2015 - 04:30 PM, said:

Yes I agree with electrical testing etc, but legionairs testing? Can anyone point me to a single case of Legionairs that came from the water sustem in a domestic dwelling?

Agreed. That's why I only copied certain points down.

Jack

#14 Roger440

Roger440

    Regular Member

  • Members
  • PipPipPip
  • 144 posts

Posted 26 November 2015 - 08:35 PM

View Postgravelld, on 26 November 2015 - 05:42 PM, said:

I don't really think that's a particularly good reason. No-one is born knowing about property investment. Similar with the stock market, or bonds, or whatever. There's always a wealth of information out there to learn about these concepts. Put another way, ignorance is not an excuse.

Actually, its a very good reason. I need to do something for my retirement. 20 years of railway pension is now near worthless. A house is a physical thing. Cant be stolen by dodgy companies, bankruptcy, chancellors (like my pension) etc. I wont invest significant money in stocks, bonds etc. Because i a) dont understand it, b ) trust no one else with my money. Which rather limits my options. For those who want to and understand stocks, bonds etc, great, but its certainly not for me.

So here i am, a reluctant landlord through force of circumstance. Is it grief, yes, but im not sure i have many other options.

Edited : B) to b - space )

Edited by Nickfromwales, 27 November 2015 - 08:40 AM.


#15 gravelld

gravelld

    Regular Member

  • Members
  • PipPipPip
  • 655 posts

Posted 26 November 2015 - 10:01 PM

I don't understand how you can label willful ignorance as a good reason.

We might be getting a bit off topic for a self building forum. I recommend Monevator and The Long and the Short of it by John Kay as good intros.

#16 Roger440

Roger440

    Regular Member

  • Members
  • PipPipPip
  • 144 posts

Posted 26 November 2015 - 10:18 PM

View Postgravelld, on 26 November 2015 - 10:01 PM, said:

I don't understand how you can label willful ignorance as a good reason.

We might be getting a bit off topic for a self building forum. I recommend Monevator and The Long and the Short of it by John Kay as good intros.

You can call it ignorance if you like. Just not wilful ignorance! Whilst i have tried to understand these things, as i feel i really should,and indeed might be better off as a result, i dont. Maybe im just dumb? In the meantime, i'll do something i do understand to provide for future.

#17 gravelld

gravelld

    Regular Member

  • Members
  • PipPipPip
  • 655 posts

Posted 27 November 2015 - 09:13 AM

You're not dumb and it doesn't take a lot of work to understand what-you-need-to-understand. Indeed, a lack of time can be an advantage. Read The Long and the Short of it (also some good insights there into how currently the markets are forcing short termism - see the house builders thread!).