What shall we do? as pressure mounts to pass on costs to tenants.
As landlords and Letting Agents continue to feel the pressure of more and more legislation and taxes we are all starting to wonder where it will stop and how to deal with the onslaught of costs.
The real story started many years ago when the country was run by two schoolboys Cameron and Osborne. Since they messed up and ran off together after a disastrous brexit plan backfired, the bashing of the PRS baton has been passed on to our dear Mrs May, who, in order to continue to keep the popular vote of 9 million tenants is just as intent upon watching her cabinet continue to destroy the Country’s rental and letting businesses as her predecessors. This is evident as 27% of UK Estate and Letting Agents are now in financial distress due to Government policies so the Government certainly seems to be achieving their goal.
Of course we all act in different ways when being attacked but what do we make of super landlord Fergus Wilson most recent move?
When Fergus Wilson makes the headlines, you know it’s going to be a gripping and polarising read. He is a landlord who owns over 400 properties in Ashford and Maidstone in Kent and was once listed as #453 on The Sunday Times rich list. But it’s through his controversial decision making that he became such a recognised name.
Now he’s making headlines again by putting a blanket rent increase across all his properties of less than an hour after the Bank of England announced an interest rate increase of 0.25%.
Wilson said in a statement:
“It is merely passing onto the tenant the additional mortgage charge.
“This increase starts immediately.”
So, the real question is “who should pay for the additional cost of a mortgage?”
There is an argument to say that a rental property worth what it is worth and the interest rate increase is the cost of doing business for the landlord.
The other side of the coin is why should a landlord be forced to protect their tenants from changes in the economy – if the cost of living goes up, should it not go up for everyone? If oil prices increase, who pays for that? The consumer.
Whichever side of that fence we all fall, it has to be said that the property tycoon has probably gone a little too far with the amount, or has he?. The blanket rent increase he imposed is £50. Yet the increase of 0.25% on a tracker mortgage would only add an extra circa £25 per month onto a £200,000 loan.
The question is what is fair on our tenants and how much should we pass onto our tenants of the taxes and legislation changes costs? please tell us what you think?