2.6M renters facing a rent increase

2.6M renters facing a rent increase

Online letting agent, Upad.co.uk, has compiled a new survey and revealed that, as a result of the recent announcement made by the Chancellor in the Autumn Statement to remove this charge to tenants, 40% of landlords now plan to increase rents if they are left to pick up the cost of tenant fees.

Only a third of the respondents questioned said that they would definitely not raise their rents, meaning that potentially two thirds of tenants, or up to 2.6 million renters, could face a permanent increase in rent as a direct result of the recent announcement.

The research also highlighted that 75% of landlords have no plans to sell their buy-to-lets, despite a barrage of charges inflicted on landlords over the last year, designed to push out landlords in order to free up housing stock.

James Davis, CEO and founder of Upad.co.uk, commented: “Once again a measure that has been brought in to punish landlords has come home to roost. Due to the chronic housing shortage we face in the UK, the lettings market is under immense pressure and this attempt to help potential first time buyers has actually done more harm than good. Instead of punishing landlords, we need to find ways to increase the supply of quality and affordable rental property to help house the millions of people who need it. Frustratingly for everyone involved, this research suggests that landlords will be left with no choice but to further increase rent."

Landlords are still reeling after the 3% stamp duty surcharge earlier this year and the forthcoming plans to prevent landlords deducting mortgage costs from rental income and limiting tax relief on mortgage interest payments.


Mr Davis adds: "This recent blow is just one of many that have hit landlords hard in 2016. The neglected lettings industry has a bulging balloon of tenants who are chasing too few rental properties and by continually kicking landlords, this situation is not going to improve.

This total mismatch between supply and demand is driving rents up by as much as 5% a year, rising far higher than salaries, which are predicted to rise by only 1% next year. Already 10% of all tenants in the UK have fallen behind with their rent payments and I predict this will rise by as much as 25% next year with the gap between rents and wage growth only widening.”

Upad also admits that many of its own landlords will be less affected by this recent announcement given their ability to 'self-manage' their property portfolio with their on-line service.

James concluded: “Our landlords still face costs when setting up a tenancy but we estimate these to be roughly about half of the average fees reported this week by typical lettings agents. So whilst there will still be a cost to bear, the impact hopefully won't be quite as hard-hitting for our landlords and their tenants.”

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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