The BBC today reported on how rent has risen by aroun 10-11% while house prices are expected to drop by 20%. When they interview landlords on this they give reasons such as increased market (People selling houses and renting for a while)
Of course they avoid the major issue on this.
The Reason Rent is rising so dramatically in some areas is because Buy to Let investors are in serious trouble. Many of them have found rent not covering rather significant mortgage increases, and with few other places to turn they are placing the burden on their tenants.
The Reason Property owners are admitting this to the press is that it would be an admission of their own guilt
By admitting they are raising rents to keep up with mortgage prices they are admitting it is their fault, they stretched themselves too thinly over debt and failed to keep enough money in reserve to cover high interest periods. For that reason when times get tougher they have no choice but to massively increase rent, despite the fact it carries a significant risk of putting them out of business.
Despite the facct that there are a huge amount of unlet properties currently on the market as people return to house and flat sharing the Landlords will continue to spout their bullshit to remove any possible blame to themselves, in the end however a lot of them will go bankrupt as the market normalizes
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