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TODAY'S OTHER NEWS

Baroness accuses landlords of having tenants over a barrel

Half of private renters have faced a rent increase in the last year, it’s claimed. 

Activists in Generation Rent claims of those paying more rent, most were asked to pay over £50 extra.

The group - led by Baroness Alicia Kennedy - says: “After the government acted to cap social rent increases, and improve the terms of Support for Mortgage Interest, private renters remain vulnerable to unaffordable rent increases that could force them out of their homes. Generation Rent is calling on the government to freeze rents, suspend no-fault evictions and link Local Housing Allowance to market rents.”

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The survey - which the group says was only of its own supporters, so not a representative sample of tenants - shows that half of supporters who had lived in their home for longer than a year had been asked for a higher rent in the previous 12 months. This is up from July, when 45 per cent of supporters reported the same.

The size of rent increases has also increased, with 46 per cent of supporters’ rent increases worth more than £50 per month, up from 42 per cent in July.

One in five respondents now report that they have cut back on spending in order to pay rent, up from 17 per cent in July.

Generation Rent asked its supporters what reason they were given for their rent increase. The most common answer was “higher market rents” (40 per cent) followed by “cost of living” (19 per cent) and “letting agent advice” (17 per cent). 

The activists claim that despite recent interest rate increases, just 11 per cent of respondents said their landlord had blamed “higher mortgage payments”.

The most common experience for people moving in the past year was being asked for a guarantor, with 41 per cent being asked for this.

Generation Rent is once again calling on the government to freeze rents on existing tenancies, suspend Section 21 evictions, and relink LHA with market rents.

Baroness Kennedy says: “Despite the support package around utility bills, private renters are becoming increasingly anxious about paying their rent. While it is possible to negotiate, renters know in the current climate landlords have them over a barrel. 

“Landlords can ask their tenants to pay the going market rent or use a no-fault eviction to force them into the ultra-competitive lettings market.

"Without emergency government support, renters will face dilemmas which will result in ill-health, as a result of the stress of finding a new home, eating less or turning the heating down.”

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  • icon

    Has the Baroness also contacted the government about Tesco and Asda putting up the price of; bread, butter and Cheese or builders for putting up their prices. I could go on……. This little Baroness, needs to get in to the real world. People should stop funding her and the other leftist organisations who between them do not house anyone.

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    Tesco price of milk was £1 for 4 pints of semi-skimmed and I believe in less than a year it’s now £1.65! Surely the Baroness must know this 🤦‍♂️

     
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    Why doesn’t this Baroness keep her meddling ill-informed nose out of this. The majority of Landlords have either not increased their rents or only done so with justifiable cause brought on by in many cases issues caused by government ignorance or ineptitude and after reasonable discussions with their tenants!

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    Not again. The government has already appropriated our private property once during covid and now this idiot wants to do it again.. Does the concept of private ownership and the right to be in control of your own assets not compute with these people?

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    No. The left are taking over. Look at Scotland and Wales. We have Labour in 2 years ( not that we’ll notice much)!

     
  • Bob wellamd

    I honestly don't remember ever forcing a tenant in to a property and signing a rental contract against their will. To hear these activists rant on it's as if they blame the people offering accommodation for all the housing and financial issues caused by .... anybody but landlords.

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    • A G
    • 21 December 2022 07:08 AM

    The Baroness should lobby the government to get interest rates and inflation under control instead of lambasting landlords for trying to cover their costs. This is a real challenge for landlords now to try and meet spiralling interest payments.

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    Made even worse by Section 24.

     
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    Yes agree mortgage interest rates are the biggest problem for many (on top of all the other problems) will have to sell up if they don't settle below 5%.
    I don't believe my tenants or indeed most other tenants locally could afford the rent increase that would be needed to cover interest rates above 5%.

    And before anyone says you should have thought of that, we have been told for the last few years that if and when interest rates went up it would happen very gradually so as not to crash the economy and cause mass repossessions.

     
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    "Baroness accuses mortgage companies of having mortgagees over a barrel"

    Which is obviously just as ridiculous...

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    The hard truth is that WE own the things !! So yes, it’s a power imbalance… And ?? When you own anything that someone else wants there is always an element of having someone’ over a barrel’. The solution is easy enough, build millions of social houses, and stop the attacks on landlords. If neither of these are done then tenants lives will only get worse.

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    Yes agree the way to control us greedy landlords in a free market is to have competition, so build those houses, rent them cheap, and by then we will all be retired, job done.

     
  • George Dawes

    Baroness , real lady of the people 😂

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    £50 increase on rent that was originally £500 is a 10% increase (so pretty much the same as inflation). A £50 increase on rent that was originally £2000 is a 2.5% increase (so an absolute bargain).

    Rent can only be increased once a year.
    Tracker mortgages have increased 8 times this year. We only have one small mortgage on a tracker but the payment in January 2023 will be £400 more than the payment in January 2022. That's a 327% increase.

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    When we were living in Army housing we had a rent rise every year & I believe it happens in Social Housing too so what is the big deal about a rent rise every year? Most things go up annually - why should rent be different?

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    Wasn't it announced recently that Social rents are going up by 7%?

     
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    Yes Jo normally its inflation plus 1%, but they have capped it at 7% this year. But this implies inflation plus 1% is fair, just not affordable for their tenants this year.

     
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    Baroness is so smart why doesn’t she & Shelter house them with their Charity Status indeed.
    My Rents haven’t gone up in years while being loaded with costs & Compliance.
    I have been accused of being a Charity landlord but unlike the other meddling Charity I pay 40% tax on residue, never any mention of the billions landlords pay, anyone would think we were free loaders.

  • Nigel Spalding

    I did not hear the baroness defend Landlords when rents plummeted in the pandemic. Maybe if she had then many landlords would not have been forced to sell ending up now in a situation where there are now less properties to rent but at least the same demand. This is the some reason why rents are increasing: less supply over demand. The problem will get worse as more landlords will gallop out of the market when the Market allows it. PRS has been killed.

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    You are right, nobody thanked those landlords who froze rents or offered flexibility on rent arrears. Baroness not very bright if she can't see that all this nonsense just makes things worse as landlords decide to sell up.

     
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    We have just fitted a new boiler and the tenant has asked if she can only pay half the rent next month for the inconvenience of being without heat for two weeks. I have just pointed out that her rent has gone up by only £25 in 8 years and she has been paying £245 per month below current market rate. I have also told her that our costs are increasing by £200 per month next year, but we are increasing rent by £100 per month. We have offered her £100 for inconvenience.

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    Time to get rid while you can.

     
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    Chris, as Jo Jo says get rid of her quick while you still can, then put the rent up for the new tenant

     
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    Given that she will presumably now save money as the new boiler will be more efficient she is having a laugh! Who compensates Homeowners when their boiler fails? if anything, her rent should go up as your house is more desirable!

     
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    If I had a tenant who had only £25 rent increase in 8 years and then had the nerve to suggest this I am afraid they would be looking for a new place. They will then find they need to pay at least £200 a month more, and they will regret trying it on.

     
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    Wish her well and ‘goodbye’.

     
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    Some long term tenants have zero clue what is going on in the wider rental market.

     
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    When S21 is gone she will find herself in a more secure position and from past experience tenants like this just get more demanding. You will have a nightmare on your hands. Agree with other posts. S21 her now while you can and then quick refurb and relet at higher price before the decision is removed from you. This may seem heartless but I speak from experience

     
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    See Catherine Wright's post! Many currently good tenants are set to get worse later when they know they are entitled to stay in your house. One of the main reasons I am selling now. I've done my S21 already for one difficult tenant.

     
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    I wish that i had seen advice similar to that listed in this article. I am now going to Court to evict on a section 21 and it will take months of no rent before I will succeed in removing these tenants.
    They have moaned and complained whenever I do anything to the property. Trades men have complained to me concerning their aggressive demeanour and they are at least 5 months in rent arrears currently.
    Have been advised against using a section 8 as that will take longer, as they are bound to contest issues all the way.
    Now that I am being educated in a most expensive way I whole heartedly agree, find a new tenant.

     
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    Andy,
    I am in a similar position. I have a difficult tenant. She complains a lot. I get things fixed. Then she reports other stuff a day or too later so I have to get the same tradesmen back again! She's a PITA. I've done my S21 for same reasons as you. Getting rid while I still can. I've put the house on the market due to Gove and increased costs. Also to overcome endless retaliatory eviction claims. Avoided S8 as you have.

    You are 5 months in arrears so maybe S8 would be worth it for you? Try MCOL if they are working. Mine is on Universal Credit. I have applied for a direct payment and it was approved yesterday so I should now get the rent through the eviction process.

    Being a landlord is a dreadful business pre-covid and mini budget with a bad tenant. The White Paper needs to be binned.

     
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    Nick and Andy, we've all been there at some point, you don't normally need a court appearance for sec 21 unless it's changed, and you can claim direct payment once arrears are 2 months, definitely do the money claim online it's cheap as chips and dead easy then an attachment to earnings or benefits and screw their credit rating, non payers should never be let off on principle

     
  • icon

    "Half of private renters have faced a rent increase in the last year, it’s claimed. "

    What? Only HALF? Blimey! I would hazard a shrewd guess that ALL private renters have had an increase in council tax in the last year. And an increase in utility bills too.

    And every year car insurance goes up.

    So, Baroness, your point is . . . ?

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    Just put "reinstate tax relief for mortgages" in your search engine to find the petition

  • Kevin

    It’s only when I read reports like this that I think I need to up the rent to market value. Just in case I don’t get another chance to cover future costs.

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    Heard somewhere yesterday the RPI was up over 14%, this affects everyone not just train drivers, postmen, nurses, but landlords, heating engineers, builders, as well, we're all having to ask for increases.

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    "The survey - which the group says was only of its own supporters, so not a representative sample of tenants". Says it all!

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    Firstly, only half?
    What are the other 50% of landlords thinking?
    Secondly, mine all had less than £50 this year, which was less than 5%
    But next year it will have to be at least 10% due to mortgage interest increases.
    Or I can just sell up. Whatever.

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    11043 at 10.11am

  • PossessionFriendUK PossessionFriend

    How many tenants do Generation Rent provide accommodation for ?
    ... I think its the same number as Shelter !

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    Its a big fat 0. Unlike the zeros these home wreckers prefer to add to their bank accounts doing their 'good work'.

     
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    I’ve passed the petition details on to the Scottish Landlord Association, who have passed to their legal team to assess whether they can share with all Scottish members. Fingers crossed!

  • Daniela Provvedi

    Signed at 13:21 - 11,427 signatures.

  • George Dawes

    Alicia Kennedy, Baroness Kennedy of Cradley is a famous Politician, born on March 22, 1969 in United Kingdom. As of December 2022, Alicia Kennedy, Baroness Kennedy of Cradley’s net worth is $5 Million.

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    Think what she could build with that and then rent all out at LHA rates to her workshy scroungers, come on Alicia put your money where your mouth is

     
  • icon

    11,874 have signed the petition as at 19:41

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    Perhaps a lot of Landlords just do not know about it. I am trying to think of other routes to publicise. What about approaching all local agents and asking them to forward it to their clients. There may be hands off Landlords out there who just leave it to their agents?

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    Has NRLA emailed all its membership?

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    Very good point!

     
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    No they haven't, as at this morning.

     
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    Ben Beadle do something good for landlords? :))

     
  • Tara Meeks

    I wasn't aware of the petition, I have now shared it.
    Thanks

  • Peter  Yednell

    On what be of my properties, I recently increased the rent by 5%. The first increase for six years.. That is typicial of how I treat good tenants.. And I am not the only landlord who dosent apply market rent increases... But... Ooh... Nevermind, just have a uniform rent freeze on all landlords while LL costs are going thru'thd roof? Why not? F#&k LL's, right? Baroness Kennedy is evil.

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    I have a retired couple who haven't had a rent increase in 11 yrs since they moved in, they have however landscaped the garden (front & rear) improved the kitchen, re carpeted, new flooring to hall kitchen and utility room , and paint & decorate to a professional standard , generally I keep rent increases low for good excising tenants, I increase to full market rents on change of tenants

     
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    Andrew, same as that in many cases and in one it stayed the same for 20 years even though I was hit with ever mounting costs not least Mandatory Licensing Schemes and Compliance work costing thousands. At the beginning I had 6 weeks Deposit that I no longer have, having been taking away by Shelter in 2007 and replaced by a ponzi liability Scheme.
    Incidentally the HMO License has been renewed 3 times and coming due again with all the Certification Certificates required again, the Application Fees alone have gone from £650. to £1500. Then try to blame us for the housing crisis they created.

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    It’s the very first Christmas ever in 42 / 43 years that I haven’t visited all my Tenants with presents, that should give you a good indication the depth of frustration.

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