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How are people affording the increases in rent?

101 replies

stmawes · 04/05/2022 22:52

How on earth is everyone expected to keep up with the rent increases? Like, where is the money coming from?

I am a young teacher, earn about 30k a year. Which is a decent amount. I live in Zone 3 in a rented flat with two others. I am trying to scrape together a deposit for my own place one day, so I picked a cheaper flat.

My rent is currently £650 a month. My landlord has just informed us that she is increasing the rent to £800 a month next year, "to reflect changes in the market". I offered to meet her half way, and pointed out that I am a good tenant. This was rejected.

OP posts:
forlornlorna1 · 07/05/2022 21:43

worriedaboutmoney2022 · 07/05/2022 20:48

We rent and prices are just hugely increasingly. We are hoping to buy as we have received some inheritance although I'm now stressed about that with the housing market and interest rates so it seems a double edged sword in a way - I was thrilled initially but now very worried

The house 3 doors down the family rent for £1000 we are in East Midlands and it's been re-advertised at £1450 so that's another £450!!!

I know the current tennants as we have children a similar age and they said there's been no viewings it's been advertised over a week now and it's a lovely area and popular but I just think that's too much really.

I'm West Midlands and it's the same here. Rents gone up stupidly but ppl in this area cannot afford it at all so there's houses on our estate sitting empty. My grown up dd is in a one bedroom flat with her daughter. Rent is double what I'm paying in mortgage so she's no chance of saving. She's moving in with us so she can save. Going to be very cramped but it's the only way

EvilPea · 07/05/2022 22:08

forlornlorna1 · 07/05/2022 21:43

I'm West Midlands and it's the same here. Rents gone up stupidly but ppl in this area cannot afford it at all so there's houses on our estate sitting empty. My grown up dd is in a one bedroom flat with her daughter. Rent is double what I'm paying in mortgage so she's no chance of saving. She's moving in with us so she can save. Going to be very cramped but it's the only way

Your daughters incredibly lucky to have you.

EvilPea · 07/05/2022 22:10

Heresafe · 07/05/2022 19:50

is It common they go up with inflation? This is the reason we were given for a 7% rise we weren’t expecting.

They aren’t going up with inflation. They are going up because a lot of landlords have taken advantage of the house prices going up and have sold. So there’s now a huge supply and demand issue.
Add to that air b & b making it more profitable to rent daily instead for some areas.

worriedaboutmoney2022 · 07/05/2022 23:54

fatfrenchprick · 07/05/2022 19:56

I'm not managing at all and I'm in a HA house, I haven't paid my council tax this month so I can buy electric and food. I don't know what to do, I'm not sleeping much

I'm sorry to read this,
I'd phone the council tax office up and explain the situation see what they can do to help.
Also you may be able to get a
Good bank referral too

You won't be the only one in this situation unfortunately it's a widespread problem / I was reading in the news that credit card spending is at an all time high which just creates further problems down the line x

Yellowhase · 08/05/2022 00:32

It’s ridiculous. We looked at a rental last week. £1100 we currently pay £875. Our landlord won’t fix damp issues. The £1100 house tenants had just left after 10 years. The landlord wasn’t doing a thing to the property. Happy to take the money and let the tenants do all the work. Pure greed. We can’t afford to buy where we live currently as prices have shot up. But cheaper properties are all advertised as auction sales so go way above asking price. It seems landlords/developers are in such a strong position first time buyers haven’t got a chance. The government wonder why there isn’t enough housing….,

Shehasadiamondinthesky · 08/05/2022 10:52

They aren't managing it. That's why my DS and DiL are moving into my house. They can't afford the increases in anything.

worriedaboutmoney2022 · 08/05/2022 11:44

@forlornlorna1
Your a lovely Mum helping your daughter out - she's very lucky to have this as an option ❤️

FrippEnos · 08/05/2022 12:42

Is that £650 each?

My rent is currently £850, but anything that is on the market as being the same size is £1050.
It doesn't bode well for when my rent comes up for renewal.

but it will just eat into the spare money that I have have from my salary ad I will have to cut down on anything that isn't essential.

Tediumincarnate · 08/05/2022 12:49

This thread is incredibly depressing but makes me grateful for my mortgage- although over 1000 for a modest ex council house, I will moan no more! I also resolve to do more to support people in my local community who will be struggling.

QueenCamilla · 08/05/2022 17:29

People won't be able to pay.

My rent went up by £60 but together with the increase in bills & councill tax & food I can't afford it.

I'm buying and relocating to a cheap area.

WombatChocolate · 08/05/2022 17:29

The thing is, this is just another of the cost increases. With inflation rising, you’d expect rent increases too….quite how much is debatable, but you’d expect some increase, because the Landlords are also facing increased prices and costs in all the areas of their own lives. Or are you suggesting that because LL are capitalist scum living off the misery of others, they shouldn’t put up prices, but just absorb their own cost of living rises and not pass them onto their own business??

It will be an additional struggle to tenants, along with rising utility bills, and all the other costs of living that are rising. There probably will be more evictions over time, but that won’t purely be due to rent rises but also due to the other price rises which leaves less available for rent. In the same ways there will probably be more houses repossessed due to mortgage non payment.

Im not sure I agree that rent rises will be short lived and Demand will fall because people can’t afford it, causing empty properties and large numbers of LLs to sell, resulting in falling house prices or falling rents. Demand is so high in relation to supply already - that’s why rents are able to rise. It won’t be the case that huge numbers of properties are left vacant …there are more people wanting rental properties than are available in most areas. Most Landlords will be able to fill their property and although some will sell up due to over stretching themselves or costs of meeting regulation, in the whole market, this will be small numbers. Therefore rents will remain high and over time to rise.

For tenants, it will mean making difficult choices, as it does for everyone who is stretched at the moment. To pay their rent, they might have to have less holidays or cut back on amounts spent on food or leisure or pensions or clothes or anything else they spend on. If they have nowhere to cut back (some people in this position, but most will be able to make some kind of cutbacks) then they will either move to smaller and cheaper property or cheaper areas. Some will go to shared accommodation (single people) or return to parents. There will be enough people who can make adjustments to other spending to keep most properties going…people have to live somewhere.

Where LLs have over-priced with regard to the local market (and that’s the thing to check with the rent increase…is it in line with local rents) then they might struggle to get tenants. Most will simply reduce the asking rent a bit and find that solves the issue and they get tenants. Most won’t be selling up as a result of it.

Sorry Op. Its a hard time for everyone. I’d email your LL again and make another slightly higher offer and again point out that you’ve always paid on time and by keeping you on, they will save on any void or need to redecorate etc. Stress you’d really like to stay. The cost to a LL of changing tenants is actually significant, there are usually costs involved in re decorating or other maintenance, a period when the property is empty having the work done and all the costs of advertising etc. Unless they are sure they can get a significant increase in rent, usually sticking with a known tenant who wants to stay is best. Definitely worth asking again. You’ve nothing really to lose.

EvilPea · 08/05/2022 18:14

they probably haven’t overpriced, it’s just demand is outstripping supply. So that’s where the increase is driven from. Not in line with inflation, or increased costs. It’s the fact they can ask £500 a month more, because it’s the only house on the market in a 5 mile radius.

moving to a cheaper area, doesn’t work when you have kids in schools, jobs etc. there is not a cheaper area for me that’s commutable within an hour and a half. I’m already in the “shit” area that.

im not landlord bashing. For a landlord it’s a business, for the renter, it’s home.
it’s a very very hard line

EvilPea · 08/05/2022 18:18

When you’ve kids in your local school, exam years, their friends, clubs etc. your going to do everything you can to stay in that area.

You already feel guilty that they live in a rental, so you shit yourself whenever they get the paints or pens out, or that they can’t decorate their bedroom like their friends, have pictures up or have pets. have to pack up and move at two months notice with all the uncertainty. Your going to go without eating, without putting that heating on, your going to do everything just so they can stay in that school with their friends

thats so unjust. It’s a really really hard life to live.

FrippEnos · 08/05/2022 18:36

WombatChocolate

I am fine with rents increasing, it is something that they do.
£200 pounds for no other reasons than LLs can do this to make their lives easier is not on.

In my contract it states that it may go up by a reasonable amount.
I will be putting forward that £200 pm is not reasonable.

Cameleongirl · 08/05/2022 18:43

I’m not landlord bashing. For a landlord it’s a business, for the renter, it’s home.
it’s a very very hard line

Well put, @EvilPea And even people lucky enough to be able to buy a home can get shafted with high prices- we paid a lot more for our house than our neighbors who bought theirs six years earlier. We couldn’t buy before then so the sellers did very well.

worriedaboutmoney2022 · 08/05/2022 19:16

EvilPea · 08/05/2022 18:18

When you’ve kids in your local school, exam years, their friends, clubs etc. your going to do everything you can to stay in that area.

You already feel guilty that they live in a rental, so you shit yourself whenever they get the paints or pens out, or that they can’t decorate their bedroom like their friends, have pictures up or have pets. have to pack up and move at two months notice with all the uncertainty. Your going to go without eating, without putting that heating on, your going to do everything just so they can stay in that school with their friends

thats so unjust. It’s a really really hard life to live.

@EvilPea

This is so so true for so many people and we are one of those families at the moment.
No pets
Nothing to be hung on a wall
Any damage has to be paid for
Constant fear of eviction
Not feeling "at home"

And we possibly have the laziest landlords on the planet in terms of doing maintenance etc...... they won't spend a
penny.

I will be telling ours that until they sort out any outstanding maintenance issues I won't be considering a rental increase as we pay on time every month without fail and we've had 2 inspections since Covid and flagged up the same maintenance issues to them on both visits - have they bothered to come and sort it?
No they have not!!!!
It's all documented and we are ambit worried about when we leave that they will Be funny about the deposit which is infact 3 months rent!!!! And we need this money back!!

As I said on an earlier post we are looking to buy and hopefully will be able to do so before this conversation arises!!

It's just going to be so so difficult for people tho isn't it? Especially youngsters trying to get a foot on the ladder. It'll
Be like mission impossible!

worriedaboutmoney2022 · 08/05/2022 19:19

FrippEnos · 08/05/2022 18:36

WombatChocolate

I am fine with rents increasing, it is something that they do.
£200 pounds for no other reasons than LLs can do this to make their lives easier is not on.

In my contract it states that it may go up by a reasonable amount.
I will be putting forward that £200 pm is not reasonable.

@FrippEnos

I agree - an extra £200 a month is far from reasonable!!

My friend got a letter saying hers would be going up £50 a month on renewal and she is unhappy with that as it's a very small house in need of modernisation etc... then she reads further down and it said something along the lines of "in order to keep up with current market rates it would be reviewed every year on the 12 month renewal date"

They have her over a barrel tho as everything being advertised is already more than her rent plus the £50 and
The hassle of moving!!

timestheyarechanging · 08/05/2022 19:31

It's awful. My neice and her partner pay £1300 a month rent and LL tried to put it up recently by £200. They negotiated and got it to £100.
These are young people working very hard (teacher and graphic designer) and trying to save for a deposit to buy somewhere. I feel for them.

I'm so pleased my daughter, 23, has been saving since she was 18 as she was living with me and then her dad, rent free and has a good job. She has enough saved to buy with her boyfriend next year. I don't want my kids to ever have to pay rent and pay off someone else's mortgage. My parents drummed this into me when I was in my early 20s (as was ex H) and I bought at 24. I'm now 51 and mortgage free.

WombatChocolate · 08/05/2022 19:36

FrippEnos, I wonder if you’re thinking of someone else’s comment about amounts of rent increase. I didn’t suggest LLs should raise rents excessively or comment on sizes. It’s hard to know about individual cases or reasons for what look like large increases. It could be greed, or it could be that a LL held rents at a particular rate for many years and are also facing significant costs in terms of ground rents or service charges or other costs. It’s hard to always know the reason for increases.

However, most LL look to limit increases to existing tenants, for the reasons I mentioned before. Holding onto existing good tenants is good business. They are reliable when new tenants might not be, plus changing tenants involves all the costs to the LL that I mentioned before. Many LLs don’t increase rent to existing tenants at all and many others won’t for maybe up to 5 years. When that tenant moves on and the property is read retired, that’s when the price will go up.

It is difficult because rent takes up a very large proportion of most people’s income, but people need to expect rents to rise over time. Yes, property is an essential item, but so is food and many products and people don’t seem to complain so much about business owners raising prices when they sell food or clothes or whatever…but LLs who are essentially running a business, seem to be heavily attacked for price rises. I think it’s totally reasonable to expect LLs to provide good quality property and to maintain it (those that do t do this are charging for a service not provided) - it’s what people pay for. But it is a business. It has to make money and people aren’t doing it as a charity. LLs need to know they’re dealing with people and their lives and to treat tenants like people. That might mean being understanding when an otherwise good tenant who has always paid on time, is late paying rent one month. It might mean that when giving notice, if a tenant asks if they might be able to stay another 2 months, onsidering it carefully and accommodating the request if at all possible. It should mean that when there is a rent increase, if a tenant asks for it to be a bit lower, to seriously consider it. Whether it can be accommodated or not though, is a decision the LL will have to make.

I agree with EvilPea that it’s very difficult especially with a family being in rented. The insecurity of renting has a big impact and yes, lots of people will pay big increases to avoid having to move.

And I agree that most people will prioritise housing and stability over other expenditure. They will cut back on other items first if they want to stay living where they are. Moving is stressful and expensive. If people like their property and have found the LL to be responsive to maintenance needs and to leave them to enjoy the property, and especially if there is t much available locally, many tenants will choose to buy less clothes, have less holidays, buy cheaper food or make other cut backs to avoid moving. But of course everyone has a limit. Many people can only cut back so far on other things. There comes a point where people can’t cut back and do have to move.

As I said before Op, I’d definitely email the LL again. Offer slightly more rent than you offers when saying you’d meet them halfway. Remind them how long you’ve been there, that you always pay and look after the property. Ask if they would consider letting you stay for the rent you suggest, rather than risking an unknown tenant, and the need to spend money on getting a new tenant and any maintenance work, plus an empty property for a period. Unless that LL has a particular new cost they are facing which means a huge rent rise is vital, or unless the rent is already well below market rates, most savvy LLs will seriously consider the offer. Engage with them a bit more.

Hope it works out.

FrippEnos · 09/05/2022 06:46

WombatChocolate

Apologies for the confusion.

I was going to put in something about LLs offsetting their own cost of living by raising rents and causing others costs of living to increase but didn't get that far for some reason.

JustSoStory · 09/05/2022 09:49

My property agent always pushes me to raise my tenants' rent to breaking point. Every time I say, "no, I'd rather keep the good tenant for the long term for £600 less a year than ultimately lose out on a 2-3 month's rent (£2400) when, inevitably, the tenant moves out as the rent keeps increasing."
I've already had a tenant default within 2 months of renewing the contract. It was me who asked the agent to please decrease the rent. I suggested a decrease of £100, the agent only went to the tenant offering a decrease of £50. This was when the price of everything was going up and heating was still very much required.
It makes me so mad. The agents are so short-sighted.

jackstini · 09/05/2022 10:13

My agent is also pushing me to raise rents much higher than I want to - just because I can. I have said no

I have not raised any rents for 4 years, some not for 7 years but all costs have gone up, (many have doubled - roofing, fencing, building, new doors/windows etc.) so this means I can't completely rule out increases any more

Also some of the mortgages do have legal restrictions within them that rent has to cover 150% of the mortgage (to protect the lender and to ensure that things like buildings insurance, gas checks etc. are covered)

I have tried to come up with sensible increases, still kept all rents way below market value and given a longer notice period than required
All tenants also have the option to offer to buy their home at any point and I have had one couple do this
I accept pets, people on benefits and let them decorate however they like so they are as happy in their home as possible and have only had 3 tenants leave in the past 15 years

I would honestly be quite happy for the Government or a Housing Association to buy them all off me, as I think we do a shocking job in this country to provide enough housing. Every buy-to-let we own except one was bought for a specific person who could not get a property otherwise

Whisp3r · 09/05/2022 10:33

A tenant should not be paying a landlord's full mortgage anyway. A landlord buys a house on a 100% or 95% mortgage and the tenants pay the entire mortgage for them. The tenants buy the rich landlord a house! It is so tasteless and wrong. Landlords should contribute something substantial and should stop passing all costs onto tenants and expecting a profit on top of the free house they end up with.

FurierTransform · 09/05/2022 11:55

Landlords are going to have their hands forced. It's common advice now that due to tenant rights & the current backlog in even processing evictions let alone them actually happening, for those struggling the bills priority goes: council tax, utilities, essentials to keep working e.g. car/Internet, and finally rent.

noborisno · 09/05/2022 12:06

Has their mortgage gone up?

Mine has gone up by about a fiver but it's a social home, which I always wanted. And a job I do increased to rise above it. So it's fine.

I saw something about mortgages going up. I don't really understand mortgages as I've never wanted to have one but could that be the reason private rent is going up so much?