Generation rent is it such a bad thing
It comes with no surprise to read several reports from tenant and landlord bodies that rents in England are up year on year. Depending on the side of the fence you sit on this is either good news or bad news. However, it does seem that it will be inevitiable that in my lifetime we will become a nation of renters. Why is this so difficult to accept? Would it not be more productive to accept this change and prepare and plan so both sides of the fence have a win win relationship?
I believe the sooner we except the cultural change the quicker all will benefit, of course it starts with the political powers refraining from using the change as a means of gaining voters.
You can see from the image the average rent paid across England, although increasing, the increase is not out of line with many other of our living costs, so again why the hype created by the media that rental costs are spiralling out of control. Who wins from this hype?
It could be argued that this benefits the landlords, but let us not forget that their costs are also going up, factor in all the latest legislation changes and I am surprised to see that the increases are so small. Will rentals hit a ceiling price before then potentially down turning?
As a landlord there must be a point where the supply and demand of basic economics starts to impact on your rental prices?
Is it important to not over-price your property but instead ensure that you can confidentially achieve a rate that yields you a sensible and positive annual income so that it looks after you longer term? Is it better to have a long term relationship with a happy tenant? Instead of chasing that next tenant that might pay more? Even if this means less tenant evictions for me and my team.
I constantly read that for years, the increase in house prices has outpaced the rise in average salaries and how this is the fault of landlords, through them purchasing buy to let properties. However, who in this country sets the legislation and the law, certainly not landlords.
To close as I opened the sooner we accept and adapt to becoming a nation of renters the better it will be for all. Do you agree?