BLOG: Problem with rent controls is our costs cannot be… controlled!

admin    Uncategorized     agents

The problem with rent controls is that landlord costs cannot be controlled. For example, insurance, service charges, repairs and interest rates are all going up at a faster rate than rents.

Landlords’ margins have already significantly shrunk due to all the new regulation and tax changes, so if rents are capped then there will be even less money available to do repairs and maintenance, meaning a lower standard of accommodation.

Or worse still, more landlords will sell up meaning less properties available which will put further pressure on the already huge supply problem.

If rents are to be capped or controlled in other ways then there need to be incentives for landlords to keep them in the market such as tax credits, guaranteed rent payments by the government for defaults, no council tax for empty properties and lowering the tax rates on profits.

Mortgage costs

One example I have is one of my BTL mortgages has gone up from £289 to £624 per month since December last year but I have only been able to increase the rent by £50 as of this month. And the mortgage will be going up again next month when the new rate kicks in.

My other costs such as insurance and service charges have also gone up over £1000 this year.

This is a common story that I am hearing from our landlords too. Everyone is very concerned about interest rates and the impact to everyone.

Author BIO: Richard Jackson (main picture) is founder and CEO of landlord platform Alphaletz.

View Full Article: BLOG: Problem with rent controls is our costs cannot be… controlled!

If you enjoyed this article please consider sharing it!