my landlord’s unable to absorb cost of living increase

[originstory]

so he’s raising my rent during a 1 year contract. AIBU to refuse?

I got a letter from landlord saying my rent is going up by 5% (£40). he explains that he’s no longer able to continue absorbing rising costs so has to pass it onto his tenants. regrets having to do this, feels forced into it by circumstances beyond his control etc. if I had a rolling month to month contract, fair enough, I’ve had rent increases in previous properties which is just what happens. but I signed a 1 year contract in February so didn’t think he could raise the rent during that contract? my googling appears to back me up but maybe someone will tell me I’m wrong. however, I’m considering just sucking it up for an easier life. AIBU to dispute this?

reasons to dispute it:

• I have a contract until Feb 2023 so I feel he’s being cheeky to increase rent during it. Obviously it will increase when that ends and converts to a month to month rolling contract, which is fine.
• The cost of living increase is hitting ALL of us (and will continue to get worse) and I must admit I have less sympathy for a landlord who owns multiple properties than I do his tenants
• I don’t have a high income (at all) due to reduced capacity for work due to a chronic illness, which he knows. in fact it’s so low that I started claiming UC for the first time last year, so I resent paying him an extra £40 a month that could go towards my gas bill or food shopping

reasons to just agree:

• he’s a good landlord, sorts repairs and problems promptly and reasonably
• he’s correct in that he’ll be paying more for hallway lighting etc
• he’s a nice man so I’d feel bad saying ‘i’m not giving you more money, too bad’
• 5% is a very reasonable increase so it seems stupid to cause problems over it. If it was more I’d have less of an issue saying no
• I felt lucky to find a landlord to rent to me in the first place due to my low income/ being on UC so it would be stupid to sour our relationship over £40
• If I refused to pay I’d be wondering if he’s going to get rid of me when the contract is up because I ‘caused trouble’ and then I’d be back in the position of not knowing if I can find anyone willing to rent to me. i had several agencies refuse to let me even view properties as I’m on UC (illegal but it still happens)
• honestly, I don’t like confrontation and it’s simply easier to just agree

AIBU to dispute this?

Lol
im far from panicking im very old, but still under 50, shed loads of equity. I have younger relatives who are loaded up though, having done nothing wrong, saved, bought finally last year and given people have described how theyd kill themselves on threads such as these if they lost their homes i think youre a piece of shit looking to hear them squeal.

The only people under 50 who’ll be getting one of my properties are the ones i gave birth to ☺️

And I think you're a piece of shit too, for not giving a fan about future generations.

Should have said a damn

Oh and as far as 'plenty of equity' goes, leverage can be a real bitch, very fast. Good luck.

Oh but i do give a shit about future generations, that belong to my family. Hence my kids aren’t so stupid to think they can ride out the markets, housing or otherwise 🙄

I know of people who have disowned their parents because they are landlords. Genuinely. I have the utmost respect for those people. I live people with morals and ethics about wider society in general. You are demonstrating zero .

There isn’t a ‘my way’. I was wanting to point out that a) landlords are people, and some are rolling-in-it-bastards and many are not and b) the landlord’s real life options. I also categorically stated I would not and have not ever raised rents in contract (any contract, even after a fixed term) even to ease my own difficulties. And I’m still a bastard, and a stupid one to boot. Can’t win, can I? I was called out repeatedly, and tried to respond and explain my circumstances, and then was called out for taking over a thread. I might as well just raise the rents. At least I’d be comfortable and reviled (as I meant to say before). All that scrimping and still everyone calls you a leeching bastard

Except I’m not. So I won’t. And you’ll still say I am.

Really annoying but based on your list of reasons I would pay this. You’ll not easily find another landlord who will take you on on UC. As you said, don’t sour it.

The one way to stop landlords making any money is to not rent from them.

If you really want to stick to your morals and can’t afford to buy and the council can’t give you a council house they actually own and haven’t leased off a private landlord then there is always the streets

I think people think that councils actually own all the properties they rent out.

People seem to complain about private landlords yet as soon as landlords remove their properties from the long term rental market then there are complaints that there are no properties to rent and the cost of those properties that are available rises as the demand outstrips supply

Coming to an end of our rental in a few months and really worried that I won’t have a house to live in.

I don’t care about how much a landlord makes as long as there are choices for me on the rental market that I can afford

@Eeksteek Of course landlords are people and I'm sure some are nice people. However, I think you need to recognise that there are too many and this has in part, led to high house prices which has meant a whole generation are finding it very difficult to buy a house now. In that context you can't really expect people to feel that you are doing them a favour by being a landlord. If you don't want to be a landlord anymore sell up and get an income by working like most people do.

I foresee rents increasing massively over the next few years.

People will say, "they can't, because people won't be able to afford them", but the problem is going to be the number of LLs who give it up and sell.

There are plenty of buyers for any property that hits the market and most renters won't simply become buyers when the market becomes more liquid.

Rental properties will become much less prolific, ergo rents will go up.

Law of unintended consequences, and all that...

There are plenty of buyers for any property that hits the market

There WERE plenty of buyers but not only has buyer demand dropped over the last month or two but lenders are now tightening up their lending criteria and offering smaller mortgages - adding to reduced buyer demand ie capping the amount they can pay.

@Eeksteek

You haven't explained why you have been unable to remortgage at any point in the last 5 years? Is it because lenders see you as too high a risk? That would worry me given that both interest rates and cost of living are rising. You may be forced to sell over the next year or two.

It's quite possible that many renters will become buyers if house prices fall and become more affordable, which may happen if landlords start to sell.

It’s actually highly unlikely because the conditions under which landlords would sell would mean the lending is tightened to the point where the last people who could afford the house is a first-time buyers.

it really is a case of be careful what you wish for if you’re supposedly a socialist because wanting the big bad Landlord‘s to fail will mean the conditions have to be created which would mean a far higher percentage of ordinary people would also fail. Collateral damage if you like.

I was the only person have viewed the property that I bought recently that needed a mortgage the other 30 (that i saw - maybe more) were cash buyers. The agent had them all lined up outside and as people were coming out they were offering the asking price for cash.

I believe the market has cooled in some price brackets but the buy to let one most definitely has not and those who are paying cash for the property are most likely to be able to not pay tax on it.

those who are paying cash for the property are most likely to be able to not pay tax on it.

Not sure what you mean? Stamp duty, council tax, tax on rental income?

There still ARE plenty of buyers.

Prices may soften a little but there are still people with money to spend. And as someone else has reiterated, slightly cheaper house prices don't automatically convert renters to buyers because not everyone renting is doing so just because house prices are 10% too high for them.

It's easy to foresee what will happen next because we've seen it happen in the opposite direction, too.

When the government introduced "help to buy" did that get more people on the ladder? No, it just (massively) increased the developers' profits.

If there are 10 houses for sale and of the 50 people who want to buy them, the 10 with the most money available can pay £250k, that's what they'll sell for.

Bringing in a scheme that now means 15 people have £250k to spend but now the top 10 have £275k just means that the houses will go for £275k.

If we get into a situation where available money softens by 10% it will only mean that the top 10 buyers still get the 10 available houses, but 10% cheaper.

The issue with the housing market isn't landlords owning too many, it's with the availability of homes full stop.

Lending criteria wouldn't get much stricter if house prices just dropped a bit or stabilised. The situation at the moment where rich people are buying properties in cash and house prices and rents are rising dramatically as a result leading to poverty is not a good one.

@SofiaSoFar

I've just withdrawn from a purchase and the market is very different from when I was last looking, 3 months ago.

No more booking an open day as 1 of 30 viewers, a week in advance. Now - just phone agent and book in a convenient time. Now - I was 1 of 3 viewers this week for a newly marketed property.

3 months ago was best and final offers within 48 hours of open day. Now call from agent for feedback after viewing, not going to best and final, just send offer over when ready, do I have any questions, would I like a 2nd viewing, at a time that would suit me? They can do an evening if that works best.

Standard family house in popular area of large city (not London).

It’s also holiday season and people are taking holidays for the first time in three years.

it’ll be interesting to see what happens in autumn because typically people want to be in in time for Christmas don’t they.

@Nothappyatwork

Autumn when interest rates and inflation are both higher and when we will officially have been in recession for 6 months?

There’s a limit to how much of my my financial and personal circumstances I’m prepared to share on a public forum. I have perfect payment records and no non mortgage debt, but for a single credit card. It’s limit is £350 and I use it for groceries and fuel and pay it off in full each month. I don’t even have car finance. The issue is currently with the property and it’s tenancy, although there have been others.

@originstory Are you happy for this general Landlords-are-bastards discussion to continue, or would you prefer me to STFU about my issues on your thread? (I don’t mind at all, but people keep asking me questions, and I don’t want to ignore them, either. Your call)

Just wondering. What’s the difference between when supermarkets, clothes shops etc sell their product at twice what it costs. And landlords

Well in this specific scenario and not a general all-landlords-are-bastards discussion it's the difference between a supermarket adverting a product at x amount, pricing it at that amount on the shelf and then charging you a higher price at the till. Except you have only bought x amount with you so you'll have to put something else you need back to pay for the product. Oh and the prices of all the other products have gone up as well.

With the added concern that if you don't pay the higher price you won't be able to buy any food at all because its the only supermarket in your local area. So just a bit shit really, as is the landlord in this particular scenario.