Renting. Does this sound right??

[Happyluci]

Since I’ve moved in 2 years ago my rent has increased around 18%. It’s set to go up again in June and this will be around 28% higher rent than when I got the keys to the house.

My landlord says his mortgage has doubled and has gone up 14 times in a year.

does this sound right or does it seem an unfair increase?

I know about inflation and mortgage rates going up but 28% higher rent in a year seems a lot to me but I could be wrong so just looking for advice. Thank you

Doesn't sound great. How does it compare to similar properties in your area?

His mortgage is not your problem. If it was paid off, would he reduce your rent... Don't think so! If he can't afford it, he needs to talk to his bank, not expect you to foot the bill!

https://www.citizensadvice.org.uk/housing/renting-privately/during-your-tenancy/dealing-with-a-rent-increase/

"Your landlord can increase your rent based on something called 'market rates'. This is the average cost of similar properties in your local area.
Check the price of properties in your area so you know how much your rent should be on average"

God, I hate renting! Hope you can get this sorted.

Yes its very true. I own properties on fixed rates but the mortgage rates HAVE gone up several times. When the fixed rates end I will have to put up the rents. Im not a housing charity. PP is obviously a non owner and doesn't understand the costs involved.

So my mortgages on average are on 1.89% interest only. I rent out houses. Mortgage on £300,000 house interest only is currently £472 per month - rent obviously is more to factor in repairs, insurance, gas certs, etc etc and profit

Same mortgage now would cost at 5.64% - £1410 per month !! Gone up x3
PLUS all the costs I mentioned above and the profit element ( remember LL are not charities )

Im sure you understand.

@Densol57
My heart bleeds 🙄

Thats a foolish comment. So many landlords are selling off their properties and evicting their tenants. Its also why the rents are going up and up and there are less and less properties to rent.

If your heart bleeds it should be for the tenants who struggle to find affordable housing because there are simply not enough council houses.

Totally unnecessary comment twinkle.....

If you cannot see that a tenant paying someone else's mortgage is totally unfair then it's not me who is unreasonable.

Housing should not be a business. Why should you make a profit from someone else's hard work?

I really wish landlords could only rent out houses they owned mortgage free (or very close to.)

If LL are selling, someone is buying.
I know all too well about the housing shortage / problems and rising rents. It's just disgusting that housing benefits and universal credit paid for by all taxpayers go straight into the pockets of so many.

You really really dont understand do you ? LL mortgages are INTEREST ONLY. The mortgage is not reducing or being "paid off " and houses in many areas are hardly increasing but often reducing in price. So the LL is not making bundles on properties and even less now with rates increasing. The money is mostly going to the BANKS.

Your comment about only renting out mortgage free properties is ludicrous. Only on MN 🤣

If you are that worried about people making profit - go petition outside Tesco, or British Gas etc 🤣 Landlords provide homes to people or would you rather people are on the street or in costly hotels and housing benefit pay that as well.

Glad you are not one of my tenants 🤞🏼🤞🏼

I agree. I'm not in the UK, but mortgage rates have gone up here just the same as they have there. I have also been renting for two years - guess how much my rent has increased. Zilch, nothing, nada - and my landlords own all three of the flats here. My friend has a flat she has rented out for years, and I don't believe she has increased her tenant's rent either. If landlords are sailing so close to the wind that they can't absorb at least a good part of a rate rise then they shouldn't be in that line of business.

Op have you looked at other properties to see what they are going for now, give you and idea if it's on par

I understand @Densol57 . And you'll reduce the rent when you're mortgage free, right? Or, at least, never increase it again?

You NEVER become mortgage free as LL mortgages are interest only. The debt doesn't decrease.

Im selling up in next year or so. Too much grief. Easier to get 5% in a savings accounts than the grief of letting out properties nowadays.

Check comparable rates. I know where I live property has gone up 25% houses that were £800 pcm are now £1k pcm. Happened to a friend of mine, nothing really she could do as nothing cheaper available. Choices were move to somewhere cheaper but pay for commute or suck it up. Sorry.

His mortgage could only have gone up 14 times in a year if he's not on a fixed rate and he's in a variable or floating rate. More fool him if he's not fixed.

Re going up 28%. Yes. My mortgage repayments went up about 35% when we refixed last year

I really wish landlords could only rent out houses they owned mortgage free (or very close to.)

I think you'll get your wish soon as the government have changed the tax laws to make being a landlord and having a mortgage pretty much impossible.

It won't have the effect you think it will though as there will be more demand and less supply resulting in higher rental prices. And at that point, the tenants really will be lining the landlords pockets.

Also, you're not taking into account all the tax paid by landlords, and how it contributes to society. Nothing to do with money is ever straight forward.

I agree with @Densol57 it just isn't worth it anymore, not that it ever was much.

@Happyluci to answer your question, yes, unfortunately it does sound reasonable. In the last 5 years, the rent I charge has pretty much doubled. And before anyone starts whinging, that's because my costs have also more than doubled. To the point where even with that increase, I am making an annual loss. Hence joining Densol in selling up.

You are a very silly man.

Or woman.

I own several flats with cladding/fire safety issues which has made them unmortgagable so when the fixed terms ended I had no choice but to go onto SVRs so my mortgage payments have all quadrupled. Not sure what I could have done about that! I haven’t passed on the costs to the tenants, I’m subsidising them all which isn’t sustainable forever but I can’t sell the damn places either!!

Oh sure
I have properties worth 2 mil
Yeah I am a really silly woman 🤣
Gotta love a LL bashing thread on MN 😂
Next .....

Very naive.

We are landlords but not by choice. We tried to sell off our flat after moving out of London, it's just not fit for purpose with a baby on the way, and we couldn't! Guess what? With crazy interest rates, first time buyers can't get mortgages. Not to mention how much you need for a deposit. To note, we were advertising the place at the lowest possible price, basically so we could break even and make no profit after 7 years of ownership.

So would you have people who can't get mortgages sleep on the streets? Is that part of your utopian view?

We put the same flat up to rent and it was snapped up in no time. And yes, the mortgage have skyrocketed so the rent is high. Like PP said, we aren't a government funded body that can afford to subsidise housing.

My DH hates being a landlord and will desperately try to sell again in a year. But if people don't have the deposit or the mortgage for it, we'll have to keep on renting it out at these silly rates.

I was actually making the point that the poster assumed you were a man, not that you were silly.

Property ownership is not exclusively male.

If you read my other post, I'm in complete agreement with you.

Housing should not be a business. Why should you make a profit from someone else's hard work?

If private landlords didn't exist, the government wouldn't just take over those properties - there would just be even fewer rentals available and prices would be even higher than they are now 🙈

Not all are interest only - ours wasn’t

This

Also it’s not that easy to sell them - ours has been on the market and nobody wants flats in that area despite putting on at a low price

@twinkletoesimnot "making a profit from someone else's hard work" is literally the definition of capitalism - fair enough if you are against all capitalism but it's not going away any time soon, so that isn't exactly a practical thing to oppose.

Oh sure
I have properties worth 2 mil
Yeah I am a really silly woman 🤣

but according to you higher up the thread you are simply paying interest on the mortgages for these properties so you own nothing at all @Densol57