Jason
You could well be right. The reason I posed the question is because I recently acquired a BTL with tenant in-situ. I have continued with the same tenancy agreement as the previous LL. The tenancy is a Goodlord tenancy contract which is used by a significant number of letting agents and the rent review clause is linked to RPI.
Owner occupiers with mortgages clearly face this situation, they commit at one figure and then have it change dramatically, if tenants expect not to deal with the same then they should not rent from landlords who have mortgages.
The dramatic shift in rates has been rare, nobody saw this coming and historically interest rate variation has been more gradual.
The variation in mortgage cost is no different to any other expense which impacts rent amount.
Look what landlords selling up has done to rental prices.
If there are more properties for sale, the law of supply and demand should bring house prices down so more people will be able to buy.
Insignificant drop in housing prices will keep houses beyond reach of most current renters. Unless government will start building very affordable accommodation on a mass scale, like after II World War, we will never return to a country of owners. It’s a hard truth to swallow, and I don’t like it myself. But it’s out of our hands.
Rental prices, however, will be more affected. Rental Market won’t collapse, but more TT will be pushed into low quality overcrowded accommodation. Rent arrears and number of evictions will increase, too. We never thought of selling up before, but we actually started considering doing AirBnB just to keep the properties for longer and cover the expenses.
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