Should I increase the rent?

Without private landlords rent will be controlled by mega rich property investors who will over inflate rental prices more.

No one disagrees that it’s bloody hard to get onto the property ladder without family help - but why do you actually want to make it worse? I’ve been blessed with some outstanding private landlords who rented to us below market value, it made a world of difference. And for reference I was paying £1200 for a 3 bed bog standard house 15 years ago, so £800 p/m sounds very low to me.

It's obviously 100% reasonable to increase rent after 6 years to cover increased costs. It's also reasonable to keep rent below market rate in recognition of the fact they've been good tenants (assuming rent still covers your costs). Give them 2-3 months' notice and then they have the option of finding somewhere else, or negotiating with you, if they can't stomach the increase. You all sound like lovely people so I'm sure you'll work it out amicably one way or another.

Its hard to believe rents would be double. I’d be interested in the figures, rates and where this is.

You don't seem to be very realistic about mortgage rates vs rents...

I'm very realistic about the home I own thank you.

I like how certain posters assume that everyone's wages have gone up etc, yes they have for minimum wage workers and other lucky employees but not everyone. Our bills are sky-rocketing yet neither myself or DH have had a wage increase, I'm NHS and DH is a local government worker.

I'd increase the rent but be careful, good tenants can be hard to find.

@Username085

£850 p/m would equate to £180k mortgage at 3% interest.

Interest rates are actually closer to 6% for first time buyers with a 5% deposit, so £850 p/m would only allow you to borrow £130k.

I'm sure there are parts of the country where £130k will buy you a property, but i doubt the rents are £1300 p/m.

I can only suggest you try to earn more, save more and get realistic about what you can afford.

@sherokuso, price rises exactly like we've seen with food and energy over the past two years

Exactly. Energy prices started rising due to the war in Ukraine which increased wholesale prices. Then wholesale prices dropped but energy companies continued ramping up rates and started making massive profits. This was roundly condemned by pretty much everyone.

If your finances are so stretched, from just paying rent, that you can't save anything, then you're not earning enough to get a mortgage.

I bought my place nearly 3 years ago and if I were to be renting it I'd be paying just over double my current monthly mortgage payment

@sheroku so, price rises exactly like we've seen with food and energy over the past two years?

Rubbish. Have you seen the price of rentals? A 2 bed easily goes for £12-1300pcm here with many bidding over and above that. Mortgages for equivalent properties start at around £850pcm.

Menomeno, you must have missed the bit about allowing councils to borrow money. The government spent 15.4 billion last year on housing benefit, money mainly going into private hands skewing the market. More council and not-for -profit housing would be a damn sight more beneficial to the country than the current system.

This. I’m a good customer at Morrisons but they still put the prices up and don’t give me a discount even though I pay for all my shopping EVERY SINGLE TIME and I’m polite to the staff.

Now imagine it's COVID, people have overbought so there's a shortage of supply. Morrisons costs haven't gone up but they decide to massively ramp up the price of goods because there's a market shortage, people have to eat and so that's what they can get away with. The rest of the supermarkets follow suit as that's the new "market rate". Would you say that's just "good business"? No you'd say it's profiteering. This is the exact state of our housing market right now.

Good people do not harp on about being good people.

If your finances are so stretched, from just paying rent, that you can't save anything, then you're not earning enough to get a mortgage.

How could you cope with a rise in interest rates? What about house repairs?

How do you work that one out?

I pay above and beyond what the mortgage is for the property. How do I save a deposit when I am paying off above and beyond what the mortgage is?

I'm not sure that's true.

95% LTV mortgages are available to first time buyers.

Even in London you could buy a two bedroom flat with a £15k deposit.

If you can't save up £15k, then you're probably not capable of paying off a mortgage.

The reason people say 'Paying off someone elses mortgage' is because when rents are too high, it stops people being able to save for a deposit to buy their own home.
There are plenty of people who earn a good salary and could easily afford a mortgage(because they are paying someone elses) but theres no real way onto the ladder without a fuck off deposit or inheritance.

THAT is why the system is unfair.

This. I’m a good customer at Morrisons but they still put the prices up and don’t give me a discount even though I pay for all my shopping EVERY SINGLE TIME and I’m polite to the staff.

And as for the “ paying someone else’s mortgage “ people - I’m paying my car mechanics mortgage when he fixes my car and my hairdressers mortgage when he does my highlights.

That’s how life works - we pay for goods or services and the person who sells them to us gets to spend the money on what they like. Does your boss tell your what to spent your wages on? No? In that case stop bitching about what others do with their own money.

Hahaha that is the WORST reason I have ever heard.

its better to increase it as if you do need to sell it would be a big jump for them to go to current market rates.

So where will rental properties come from if only those that are owned outright can be rented out? Half the population would be on the street.

I think I'd assess what needs doing. After 6 years I'm guessing possibly full repaint and carpets. If your going to repaint and carpet then put rent up to £900.

If your not going to decorate then £850

My boss kept the rent below market rates for a while because she had good tenants. Unfortunately when she came to sell, it really affected the price of the sale. So be aware if you might sell any time soon.

We rent out a flat for below market rent. It was a conscious decision we made so that we attracted lots of interest and were in a position to pick and choose our tenants, whilst also avoiding the property being empty for more than a couple of days between tenants.

If it were me, I'd set a target of £100 p/m below market rent and increase rent each year until you hit that target - e.g. £950 this year and £1100 next year (based upon market rents being £1200 next year). I'd then increase each year to keep it £100 below market rents.