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Rent controls - good or bad?


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From that Guardian article <snip> The article then goes on to be wrong

 

It's comparing a 3 year tenancy to a 6 month fixed term AST, followed by 2.5 years of SPT.

 

From the Tenant's perspective, there, things are the same... the Landlord loses the flexibility of giving 2 months notice in the last 2.5 years of the 3 years.

 

I do not know of many people who sign up to a 3 year fixed term agreement. I certainly wouldn't do that... it sounds quite risky.

Edited by Hippogriff
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Does that actually happen? Who kicks out paying tenants in order to speculatively put up the price and find more tenants.

 

Not the same but I know of tenets who have been thrown out because they raised safety concerns and the wanted the landlord to fit loft insulation.

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...will you keep your tenets paying the same as they did 4 years previous? No, and this is why I raised the question.

 

But I wouldn't anyway... because I raise the rent every single year by a modest amount, to avoid large scarily big hikes that frighten Tenants away, so - over time - the mortgage payment remains effectively static and the rent rises in a nice compound way... 5%, 5%, 5% or thereabouts (bit less usually)... at least this will be the case for 5 years.

 

So, currently - mortgage payment of £371, rent of £570. Next year (well, August) - mortgage payment of £371, rent of £590. Year after - mortgage payment of £371, rent of £615... you get the idea.

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It's comparing a 3 year tenancy to a 6 month fixed term AST, followed by 2.5 years of SPT.

So the new proposal is a sort of hybrid, where the tenant gets 3 years assured, but the landlord only gets 6 months assured.

Except that the landlord can always 'plan to renovate' the property and so the tenant has no real protection after all.

 

From the Tenant's perspective, there, things are the same... the Landlord loses the flexibility of giving 2 months notice in the last 2.5 years of the 3 years.

 

I do not know of many people who sign up to a 3 year fixed term agreement. I certainly wouldn't do that... it sounds quite risky.

 

Which is what I found, people seemed to want 6 month tenancy agreements. And (like most landlords I expect) I never wanted to kick out a decent paying tenant, why would I?

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But I wouldn't anyway... because I raise the rent every single year by a modest amount, to avoid large scarily big hikes that frighten Tenants away, so - over time - the mortgage payment remains effectively static and the rent rises in a nice compound way... 5%, 5%, 5% or thereabouts (bit less usually)... at least this will be the case for 5 years.

 

So, currently - mortgage payment of £371, rent of £570. Next year (well, August) - mortgage payment of £371, rent of £590. Year after - mortgage payment of £371, rent of £615... you get the idea.

 

There is my point. In year 1, 2, 3 and 4 you have raised the rent despite any increased cost to yourself.

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Not the same but I know of tenets who have been thrown out because they raised safety concerns and the wanted the landlord to fit loft insulation.

 

The law has already changed to require properties to be brought up to the D level of EPA report hasn't it?

Something that will be very difficult to achieve with older properties...

 

Obviously safety concerns is something that people should be able to raise without being evicted, I'm not sure that this proposal at all helps though.

 

---------- Post added 27-04-2015 at 16:27 ----------

 

But I wouldn't anyway... because I raise the rent every single year by a modest amount, to avoid large scarily big hikes that frighten Tenants away, so - over time - the mortgage payment remains effectively static and the rent rises in a nice compound way... 5%, 5%, 5% or thereabouts (bit less usually)... at least this will be the case for 5 years.

 

So, currently - mortgage payment of £371, rent of £570. Next year (well, August) - mortgage payment of £371, rent of £590. Year after - mortgage payment of £371, rent of £615... you get the idea.

 

5%, above the rate of inflation and way above wage inflation!

 

Personally I only ever put the rent up between tenants. But then I only had 2 sets of tenants and have thankfully now sold the property. Being a landlord was something I never wanted to be, and it was far from the magic money spinner that a lot of people believe it to be.

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The law has already changed to require properties to be brought up to the D level of EPA report hasn't it?

Something that will be very difficult to achieve with older properties...

 

Obviously safety concerns is something that people should be able to raise without being evicted, I'm not sure that this proposal at all helps though.

 

The tenets had asked the Landlord to fix the issues and asked if he could fit or get funding to insulate the house. He wasn't interested and as they had gone over their 6 month contract, he evicted them with 2 months notice.

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The law has already changed to require properties to be brought up to the D level of EPA report hasn't it?

Something that will be very difficult to achieve with older properties...

 

Obviously safety concerns is something that people should be able to raise without being evicted, I'm not sure that this proposal at all helps though.

 

---------- Post added 27-04-2015 at 16:27 ----------

 

 

5%, above the rate of inflation and way above wage inflation!

 

Personally I only ever put the rent up between tenants. But then I only had 2 sets of tenants and have thankfully now sold the property. Being a landlord was something I never wanted to be, and it was far from the magic money spinner that a lot of people believe it to be.

 

And it`s a nightmare if you get bad tenants, it seems you were fortunate enough not to experience that. Like I said before I wouldn`t recommend anyone goes into "buy to let", and if you do it very much helps if you`re a pragmatist rather than an idealist......

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The tenets had asked the Landlord to fix the issues and asked if he could fit or get funding to insulate the house. He wasn't interested and as they had gone over their 6 month contract, he evicted them with 2 months notice.

 

Something which the new proposal wouldn't stop so long as he said "I plan to refurbish".

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