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

So only the super rich who can afford to buy houses outright should be landlords?

Try and read the WHOLE thread sweetie
Ive already answered this question a few pages back
Let me know if you need any further help ? 🤣

It's OK sweetie, I don't care that much

And according to another post the houses that are mortgage free shouldn't be allowed to charge rent!

So since 2021 my mortgage rate has gone from 3% to 9% and back to 8% now. I don't have an interest only mortgage and am paying the equity off. I don't make any money from my house at all- did in 2019/2020... however my tenants pay less than my mortgage- why because I have a house I will own at the end of the term- they won't. Mine we didn't need to sell when I got married and will be my children's when they come of age so they can have a deposit to get on the ladder.
If its a interest only mortgage however they need to make money on it- to ensure they can take care of it....

How does it work with the bank? Did you have to change to a different mortgage because you were renting it out?

In my case, I rented a house I previously lived in and had to get written permission to rent. This is normally valid for a specific period of time, after which the lender will want you to take out a buy to let mortgage which usually is a higher rate of interest.

So are you suggesting a renter should pay less than LL pays on an interest only mortgage most LL have? What would be the incentive for the LL to let out the property if they were letting at a loss? The rent paid needs to cover interest only mortgage, gas certificate, and cost of repairs plus some element of profit for LL. If the LL only paid some of the mortgage the house would be reprocessed. You are living on a different planet with your beliefs.

I’m not a LL

But my mortgage increased by £500 a month at the height of the rate issues last year

If a LL could only charge 90 percent of mortgage you wouldn't have any LL except about 1 percent who own outright. There are many more costs for LL than the mortgage. Many councils charge licence fees to LL who let out property, annual gas certificates, annual boiler service, electricity certificate to keep up with changing regulations, building insurance, insurance against tenants who don't pay rent, maintenance/repairs, accountancy fees for tax, utility bills and council tax for void month between tenants etc. There are tens of thousands of houses on RM in all areas of the country. There is no shortage of houses for sale. Why do you think they have not sold? I will tell you. It's nothing to do with LL's. It's either because people don't have a deposit saved up to afford to buy them, or people don't have the income multipliers to pass the stress testing mortgage companies use so can't get a big enough mortgage. Yet you chose to blame LL because in your fantasy world they are the ones you chose to blame for everything.

🤣🤣🤣 Many people it seems live in this fantasy world.

The bank only issues mortgages when the rent income covers the mortgage and then some.

The dip shits are too ignorant to realise that .

It is easy to see why more and more landlords can't be bothered with this anymore and are selling up. Soon there will be hardly any private let's and then you'll all be stuffed. What's the point in being a landlord if you can't make money. It's not a charity.

Well possibly, if the amount needed to cover the mortgage would mean they were charging more than market value for the flat. That's why I posted the quote and link to Citizen's Advice who know more about it than I do. I never said the OP's landlord couldn't increase the rent at all. A 28% increase in two years sounds like a lot. Where I live, market value has gone up by about 10 -15% in the last two years and that's for the nice flats - the grotty ones sit on Rightmove for ages unless the price gets reduced. OP's area might be different.

Fingers crossed x

It's not just the mortgage payments, it's the upkeep, so any trades, furnishings etc. He's running a business remember. Before he might have been happy to break even but now with COL he's relying on profit. The alternative might be selling up.
It's unclear why you're asking. I doubt challenging him will have much affect. Look around and see what similar properties are renting for in your town. If it's a lit less you might have the startvifva conversation.

Just checking I understand you correctly. Are you saying you want less rental properties available, and higher rent prices?

If so, why?

Just a thought but would all those who want fewer private landlords and more social housing be happy to pay more tax to fund this? The money to pay for it doesn't grow on trees.

I do think we need a better balance between private rentals and social housing but private landlords are not a charity and are not subsidised like social housing is.

And that the subsidy for social housing is, at least in part, funded by the taxes paid by private landlords.

This thread is hilarious and depressing in equal measure. The amount of people living in cuckoo land is quite stunning isn't it? Just beating on the private landlords with no proposed alternative. 🤦‍♂️

Actually I’ve seen several proposed alternatives on this thread. Maybe it suits you not to see them?

There are proposed alternatives, but none that are realistic. They seem to rely on a mysterious magic money tree and a complete change to the capitalist society we live in. They may be more suited to communism?