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Private landlords should follow new ‘average rent increase’ plan

Propertymark has come out in favour of private landlords being allowed to follow the example of social landlords in agreeing an ‘average’ rent rise.

Over the Christmas period, ministers in the Scottish Government reached an agreement with social landlords on below-inflation rent increases for the next financial year - this follows a rent freeze taking place until April 2023.

So for the 12 months beginning in April, social rents will rise by an average of no more than £5 a week. 

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Sally Thomas, the chief executive of the Scottish Federation of Housing Associations, says this is a good deal for tenants but also allows social landlords to plan, and reduces the problems associated with an ongoing rent freeze.

She comments: “We welcome the fact that Scottish Government has worked closely with the sector, to understand the evidence and avoid unintended consequences of this legislation, and to find a collaborative way forward. Investing in good quality, warm homes for social rent is crucial to tackling poverty in Scotland and protecting new and existing tenants from the increasing cost of living.”

Propertymark says it wants a similar deal to be extended to the private rental sector, which is also subject to the current Scottish Government rent freeze until the spring. 

Timothy Douglas, head of policy and campaigns at Propertymark, comments: “The conversations taking place with Scottish social landlords needs to be echoed across the private rented sector. 

“But instead, we continue to see costs increase such as the new raise in [stamp duty surcharge] to six per cent. Because of this, 68 per cent of letting agents are reporting an increase in notices to sell from their landlords.

"The private rented sector houses more people than the social sector, and whilst we whole heartedly support investing in and working with the social sector, it’s aggravating to continue to see the private sector be overlooked time and time again.”

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Landlord Today returns on Tuesday January 3 2023, and wishes all readers and their families a successful New Year and a well-deserved break!

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    2015 It’s actually none of your business. It’s our property and it’s a private arrangement what rent we charge and who we take on and it’s no pets or DSS

    2023 - BTL let’s not bother eh - It’s up for sale

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    All my properties and rooms are let (apart from one small room left in a state by a tenant who never ventilated it). But now I'm just going to focus my resources on cutting costs and raising rents where necessary to cover higher mortgage and fuel costs, rather than buying any more properties for the time being.

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    The Scottish government…. Leading the way in turning private properties into social properties 😬

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    Driving private landlords out of the sector! The HA’s will continue getting government money to build and rent, private landlords will disappear unless you sign a holiday let with no protection. What an absolute balls up!

     
  • David Lester

    No wonder Property mark support such an idea there Estate Agents and its not their investment. Strange so many parasites; Shelter, Generation Rent etc, want to restrict Landlords, when it is the Government that has caused 95% of the problem. Free market will continue to increase rents, i.e. if people cannot afford the property the rent then down size or speak to the Council do not expect the LL to be a charity.

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    Surely the PRS in Scotland is going to die pretty soon, unless this nonsense is scrapped?

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    The PRS in Scotland is doomed with all this crap. I'm in the Highlands and selling up my portfolio at the earliest opportunity. It just gets worse and worse... I've given notice to one tenant and others will follow but of course if they choose not to leave or can't find anything else the Council will advise them to stay put and there's nothing I can do about it... What a great "business" to be in.... Ooops, I forgot.... We're not a business... We're a charity.

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    I'm in the same position and with the tenant not paying. Whole legal system is heavily weighted in the tenants favour.
    I believe this is the end game for me, no more new tenants. When a house becomes empty i'm selling, unless the rules change in our favour....as if!
    Incidentally all my properties are in England.

     
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    I am an independent estate agent of 26 years but I am on the side of the Landord. Why?
    In the last 12 months 70% of tenants left the property not fully clean, point granted no damages ( but general clean like windows, skirting boards, extractor vents and filter not clean, carpets not professional cleaned ) bond % was taken, however the TDS also side with the government guideline giving Landord only a small % of the costs
    Landlords again out of pocket and incurred increasing costs for basics check out cleans ( which tenants should be paying 100% of.

    Why do tenants feel they can leave a house worse than then checked In?
    Because the government side with the tenants, venting a house is not the responsibility of landlords ( it’s the tenant)
    Over crowding ( is not the responsibly of of Landord ( it’s the tenants)

    Keeping a house clean is not the responsibly of the Landord ( it’s the tenant )
    Miss usage of taps and baths and shower screens not the landlords fault ( it’s the tenants )
    We have to educate our tenants all the time ( how to open a window/ clean a w.c/ dust/ cobwebs/ change a light bulb/ use taps/ take a reading of gas/ how to open a door using a security key/ how to clean a shower/ and even get calls at 2 am can you come over and change my light bulbs 😳
    Question why do the tenants of the 21 century not know basic cleans basis of a fuse change and light bulbs / how to use a hob/ clean an oven/ not flush food down a loo/ take the bins out / wash the bins if they smell/ come on…

    We I can only say it’s down to upbringing …
    I was shown all the above and how to cook my mum and dad at the age of 8 onwards, I could change a fuse and plugs ect by the age of 9 Parent supervised.

    So what we have to do is an interview on each application asking basis questions before we accept them.

    All this work takes hours longer and at the agents costs not the landlords.

    Yet still on a check out it’s not 100% clean ( tenants reply it will do, I can get away with it as it my idea of a clean and taken photos to show I cleaned it 2 months ago well before check out ( it’s laughable )



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    If the government can guarantee my mortgage, taxes and fees don’t go up by more than £5 per week then I’ll consider it.

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    Fat chance of that Steve

     
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    The SNP would promise anything on their way to independence - even a once in a generation referendum every few years - they must have meant dog generations!

     
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    I can see the SNP agreeing to a maximum PRS rent increase of £5 per week, which is under 2% in my cheapest property and under 1% in my higher rental HMO properties. Even if it's £5 per tenant, it's still under 4% increase on rents which haven't increased since 2018.

    This will NEVER happen again. EVERY property will have its rent increased by as much as possible every year, irrespective of whether the tenants stay on and no matter how good the tenants are.

    The tenants can thank the SNP and their little Green helpers for this change in policy. They can try to get lower rents elsewhere but I am stuck with my current properties unless I donate over £100k in CGT on any properties I sell.

    English landlords should look at Scotland and see the future. Put all your rents up to market rents NOW or risk being limited to below market rates for the foreseeable future.

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    Our current PRT lease states you can increase it by more than that already. So if the Scottish Gov change this it will be yet another clause in a legal agreement they’re running roughshod through!

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    The SNP say the PRS can increase rents by 3%, provided landlord costs have gone up by at least 6%, but since we can only increase once a year I am hanging on to see what happens in March or for a new tenancy agreement to be required when rents will soar.

     
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    Lee. I agree landlords will not get the property back clean but I will suffer that as long as things are not broken, sometimes they are also wore, torn broken or missing. I have lost Washing Machine’s, Fridges, expensive curtains replaced with rubbish and Henry vacuum units. which is why the 10% wear and tear
    should have stayed, not silly Trbinals to add to time wasting administration.

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    Andy. I agree nothing wrong with old houses including the Victorian I have some of those, timeless yellow stock brick laid with lime mortar and intricate detailing around windows beautiful now Regulators criticise them. I would be
    surprised if TaylorWoodrow build anything inferior. Frank was an actual Brickie and build his first 2 houses in Preston, Lancashire, which he sold to his workers. Anyway he became a major Construction Company doing massive projects including Stables Corner Concrete Flyover. Eventually the Housing arm teaming up with Wimpy (Taylor Wimpy) a well established house builder. Incidentally I worked on his wooden Grain Silos to house 1’000 acres of wheat in an old disused Church near Guildford, he would store it until after Xmas when the rush was gone and the price went up, anyway this bit is not relevant but they have built thousands of houses.

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    Hi Michael, clearly you have very good knowledge on this company, I only have a snap shot on an estate in Maidstone where both Bovis and Taylor Wimpey were the builders in the early seventies. Bovis are regarded as the better houses. I think part of this was down to battened walls whereas Bovis used the breeze blocks. In addition the TW houses had the air flow central heating which is rubbish, though understand that this is irrelevant to the build quality.
    With regard to the Victorian houses, absolutely and the same for Edwardian houses.

     
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    To Expect Frank to monitor 1000s of houses built per year is a little too far fetched for me. TW have built some half decent houses, but also have had their fair share of rubbish. You cannot become a large developer and deliver quality 100% of the time because in the search for labour you will always end up with a few rotten eggs.

     
  • PossessionFriendUK PossessionFriend

    I'm a big supporter of PropertMark but sadly I think they've totally mis-judged this and entered a topic that was not necessary or withing their domain of interest.
    Different areas and types of properties will have different expenses and market drivers for rental increases.

    The PRIVATE Rental Sector is just that, 'Private' and customers will or won't pay the asking price, same as in any other business or shop.

    Landlords properties are not for misappropriation by the state.

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    Andy. I agree if they were hot air systems they weren’t good, in the 1970’s I done the ground work, foundations and oversite up to DPC including all the interconnecting galvanised ducting of various sizes to every room a virtually complete job only floor vents & heat source required all cast insitu in concrete floor slab for some very expensive houses in Burwood Park, Weybridge Surrey, you are right not a good system but not end of the world could be abandoned and another system installed.

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    Andy. I suspect the Breeze Blocks you refer to were just a figure of speech and were indeed Insulation Blocks which replaced them namely Thermolite or Celcon building Block’s.
    Good riddance to 2022 &
    Gove’s nonsense, a pity he didn’t stay stuck in the lift.

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    Council houses were sold off in the cheap to bribe working class people to support the conservatives looting state assets. They were of good quality, however a lot of council estates were trashed by the tenants and demolished ! Timber frame properties are all the rage. OSB is the main structural member, unfortunately a lot of this and plywood is from the far East and complete rubbish. It is going to cause lots of problems in the not too distant future. Gove is a commie, a lot of things he does and says are communist polemic. He has divorced his wife and is going out with a female BBC producer ! Propertymark is manouvering itself nto a regulatory body. Micheal l think you mean Staples corner. A great structure. Nothing wrong with warm air heating, but radiators are a status system and give off radiated heat.

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    Duncan, very true happy new year and the same goes for Bovis and every other Company.
    RIP all now even the fine house he Built for his son in West London has been sold on and now the residence of highest head of the Polish Community in the Country.
    You’ll remember their famous Company Sign, all the men pulling on the rope together, (same direction of course) unlike today.

  • Fergus Wilson

    PSL Landlords should follow the rents in the Private Sector Market.

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