To think rent increases “because of inflation” are immoral when many landlords own outright?

[RentRealityCheck]

I keep seeing rent hikes justified with “inflation”, even where the landlord has no mortgage and their costs haven’t meaningfully increased. At that point it feels like pure profit-taking, passed directly onto tenants who already have no leverage and with huge knock-on effects for stability, mental health, family life and society more broadly.

AIBU to think this isn’t just market forces but greed and that pretending otherwise ignores the damage being done?

This is maintaining your own property. You'd have had to do this regardless... it's called being a home owner.

You need to view landlords the same as sellers. They can request whatever rent or sale price they want. If they over estimate they won't get any offers. If they under estimate they will be flooded with offers. Whether the landlord or seller proceeds with any offer is 100% up to them.

I think really the problem is that people don't like to see your average Joe Bloggs making money from the housing market, that's seen as immoral. If rental properties were owned by big corporations in the same way that water, electricity, supermarkets... are (which are all essential services that private companies make billions out of), then people would just see it as that's the way it is. But if you're average person down the street makes a few thousand a year then they are immoral and greedy.

Landlords take a huge risk letting out a property with no guarantee the tenants will actually pay or won’t damage the property or cause thousands of pounds worth of damage. They don’t do this out of the goodness of their hearts, they do it to make money.

When a hotel, or a shop, or any other business maintains their premises the cost of that is reflected in the costs of their goods and services to their clients. Why would it be different for landlords?

I am a landlord (of an inherited property) and have adult children who are renters, and I am definitely on the side of team rent. The lack of regulation in the housing market is appalling. Relatively vulnerable people, who cannot afford to buy, are exploited by those who are wealthier and financially secure. It isn't nice.

Rents should be fixed by local authorities, and if it means your little 'nest egg' is no longer making a tidy profit, then sell. A flood of properties coming on to the sale market should bring prices down to an affordable level for professional 30 somethings, so they no longer need to rent.

First you don’t know if landlords own outright, the cost of everything goes up every year and also, if it’s their business- they need to make a profit to live!
Are you saying that housing shouldn’t be used as a business venture?

Our rent increase in line with RPI has pushed this flat well above market value. The letting agent was unable to recently rent two identical flats at £100 less than we were paying. If they were to advertise at our new rent, no one would touch it. We queried this but ‘the landlord is well within their rights to do this’ - which isn’t what I was arguing anyway.

We’re renting whilst we find our onward purchase and all this has done is hasten our search and departure. It’s greed, nothing more.

Most of the costs that are likely to rise are📧

cost of insurance
agents fees
repairs and maintenance

These are all tax deductable business expenses and can be legitimately claimed back by deducting the cost from profit at the end of tax year. So the amount of profit on which the LL pays tax is reduced. I would like to bet that LLs moan about these, pass them on to the tenant AND claim for them from the tax man as well.

Capitalism. The End.

Maybe, OP, you should go back in time 45 years & tell Margaret Thatcher not to sell off the country's housing stock (and the water companies whilst you're there)

Do some posters think landlords should be charities?

If people put money into shares rather than invest in property, what would happen for people who want/need to rent?

Oh and other investment often return above inflation, so it’s no different. Once you’ve turned homes into investments. See my comment above.

Given all the legislation that governments have brought in, paying a mortgage is only one expense of being able to rent the property out. These are the things that are rising.

If governments want to tax the rental income a landlord receives then that extra tax has to come from somewhere.

If landlords have to pay £1000 more er year in tax then that £1000 is just going to be passed on to their tenant.

Governments and some people who are rubbing their hands together thinking they are going to be squeezing the landlord for more money need to realise that ultimately all they are doing is costing the tenants more money.

And yeah I get it, what happens to renters if all the landlords sell up etc. It's always the argument wheeled out at this point, drowning out any other nuance

But that is exactly what happened. When the Conservative government decided to not allow mortgage interest payments to be put against tax lots of landlords either sold or kicked their tenants out and turned what were long term family homes into short term lets. Then those rental properties that were left not only put their rents up to cover the losses that the government had imposed but supply outstripped demand and why wouldn’t a landlord rent to the highest amount they could get.

The mortgage interest legislation started this downward slide off. Subsequent legislation has just made it so much more difficult and expensive to be a renter.

My wish would be that future legislation is thought out from the POV of both landlord and tenant as atm everything is about what can be done for the tenant and no one has thought about what a landlord would do when faced with the new legislation.

It’s no good telling tenants how safe their tenancies will be when they don’t have a roof over their heads

I do have business common sense and a sinking fund to pay for maintenance and repairs thanks.
the maintenance is very high though and there’s a significant expense each year
the place is a bit of a money pit but that’s my choice. If the rent covers the maintenance and no more that’s fine but it needs to increase with inflation

Most shops/businesses/landlords will take maintenance out of their profits, not automatically put prices up every time work needs doing. And even if they did, it would be shared in small amounts over many customers, not the one or two people renting who will bear the whole cost.

This is a home owner, they will still own the home to sell on whenever they want to and will only increase in price. The cost of maintenance like this is not the responsibility of the tenant, it is normal wear and tear that has to be done (if value your home) to keep it in good order and protect the asset. I daresay, keeping it looking in good order will also attract a higher rental tag anyway.

@Friendlygingercat do you think other businesses don't increase their prices to cover business costs, even though they can claim them as tax deductible expenses. Do some people not understand how businesses work? They still have to have the money to pay these expenses

😂

Unfortunately it seems to be the way in the UK that people who own flats pay a lot more for work that's carried out. Couple of friends of mine got stung that way, in tens of thousands with little control.

I think the immoral thing is thinking you have the right to dictate how others spend or earn their money.

It's wrong to think that landlords shouldn't be in the business to make a profit - what about risk? Landlords have to be able to put money aside to mitigate for crappy tenants or times without tenants.

I don't think it's the only reason they donit no, but when its done well I don't think it's immoral, which is the point I was responding to.

Cost of maintenance and fees if it's through an agency will all go up with inflation. Insurance, etc as well.

Might as well sell it then if it costs more to keep it in repair than you get from the rent. The landlord isn't a charity he makes a profit or he sells up.

This absolutely.

The cost of maintenance, repairs, management fees and insurances have risen more than inflation.