O/T. Green energy

[Brin]

Just got my figures for the gas/leccy.
Leccy as predicted is 49.8p STD charge and 34.2kwh
Gas standing charge has dropped to 28.6p though the kWh has gone up a lot to 10.4kwh.

As a trial (nowt else to do) I turned on the heating this morning for 1 hour and raised the room temps by 2 degree. After 1 hour I turned off the heating and the smart metre says it cost £1.18p.
My heating is usually set at 7 hours on per day. (3 morning 4 night)

Biggest shock I've just had was mortgage rates. I have a few property and one has a buy to let mortgage on it. There's only about 80k left on it and the fixed rate (5 year) ends in January. Had a look at renewing and the monthly payments on another fix for 2 years is now £182 more expensive per month than than the last one. I try to be fair to my Tennant's and keep the rent at reasonable prices but the economy is dictating I put the monthly up. I guess Sadly the Tennant's are in the same boat so I don't want to tip them over what they can afford even though SIM property's on the same street are already £100 per month more expensive

Cayton, everyone is going to be affected by all this as we know. As for your tenants yes you have to feel for them but business is business, it all depends how flexible/ lenient you want to be. Good luck with that fella.

IF your current tenants can’t afford the hike, the risk is are there anymore suitable tenants out there to take their place should you have to terminate their contract for non payment? Fine lines indeed, all the best pal.

[caytonmiller]

This is the tip of the iceberg and is going to affect all mortgage holders (and as you say, renters) increasingly as interest rates keep going up.

Leaving the politics out of it, it is quite scary how many people simply won't have the money to cope with the increased rates on top of inflation and energy price rices. This is going to be a horrible, horrible winter when it all bites deep.

Very scary my niece has just bought a property on a 2 year deal. Even though the advice from myself and her dad was go for 10 years. They got a mortgage advisor who said your best option is 2 year fixed at 1.94% so they are saving £30 per month over a 10 year deal. plus you can change when it ends. The mortgage was for £164k This was only 6 month ago. Interest alone on 164k has jumped by almost 3x in the past 2 month. £3800 to to £9800.
Imo its Shocking they were allowed to loan so much (part time teacher and 2nd year mechanic) and I could bang their heads together thinking save £30 a month was a good deal where mortgage are concerned

[caytonmiller]

Cayton, everyone is going to be affected by all this as we know. As for your tenants yes you have to feel for them but business is business, it all depends how flexible/ lenient you want to be. Good luck with that fella.

IF your current tenants can’t afford the hike, the risk is are there anymore suitable tenants out there to take their place should you have to terminate their contract for non payment? Fine lines indeed, all the best pal.

Terminating contracts is not so simple these days if I offered the contract and they accept but didn't pay. They have to miss 3 payments before I can start court procedure which before covid was 6 weeks before the case was seen. Gow'd knows what it is now.
If I win the case at court they set a date to move out. If they don't move on this date I have to Set on a repo company to evict them.
All the while it's costing me thousands of lost revenue and theres a chance they can get help with costs due to low income.
It's a mine field 😞
On a positive note Scotland has just made a compulsory rent freeze and have to have a valid reason to evict. So if the tennant says I only can afford X amount this month, as long as it's above a certain amount the courts don't see it as a valid excuse to evict.
The government are trying to get rid of private landlords to cover the lack of new buildings as they are failing to meet the 330k targets per year needed.
A few year ago they brought in 3% tax on any purchase. Then the ecp rating going from E down to C by 2025 again to cover their lack of meeting the insulation/renewable energy targets. Now they are bringing in section 21 aimed to get rid of rogue landlords. These landlords won't be complying to the section 21 rules so will have little effect.
What they don't realise (or choose to ignore) is the private sector accounts for 2.2 million homes. If these landlords suddenly said. Sod this I'm selling up those people can't afford to buy the house they live in so how are they going to re-home these people.
It's getting that bad ATM they say if you buy houses all with BTL mortgage and rent them at the going rate. And incurred the usual AVG costs You would need income from 6 property to earn the living wage per year. What's that these days. £11 per hour.

[millersrus]

What they don't realise (or choose to ignore) is the private sector accounts for 2.2 million homes. If these landlords suddenly said. Sod this I'm selling up those people can't afford to buy the house they live in so how are they going to re-home these people.
.

If 2.2 million homes came onto the market, prices would tank and maybe then the renters would be able to afford a home to live in.
Probably a lot cheaper ( even with recent increase in interest rates ) than the rent they are paying out now.

[wendun]

I have to say it makes me sick to read decent working class lads like Brin talking about getting rid of tenants. Letting property is immoral. How you dress it up as some kind of charitable undertaking cuts no ice with me. You're in it to make money and if you get burned all the better. Social housing (without ludicrous right to buy) is the answer. All the buy-to-let speculator mob do is drive up house prices. Immoral and sickening way to make money off other ordinary people's desperation. Rackmann every one.

[caytonmiller]

If 2.2 million homes came onto the market, prices would tank and maybe then the renters would be able to afford a home to live in.
Probably a lot cheaper ( even with recent increase in interest rates ) than the rent they are paying out now.

Mortgage company's are only selling repayment mortgage and it's close to 6%. So a 85k house would be over £700 per month. The house market would need to collapse by half so these 2 million could afford the houses then what would happen to the other 26 million houses owned by fork who have mortgages. The country needs the balance and one without the other it would crumble. Btw it's not private renters who have pushed up the house prices. Most landlords buy when the market is low

[caytonmiller]

I have to say it makes me sick to read decent working class lads like Brin talking about getting rid of tenants. Letting property is immoral. How you dress it up as some kind of charitable undertaking cuts no ice with me. You're in it to make money and if you get burned all the better. Social housing (without ludicrous right to buy) is the answer. All the buy-to-let speculator mob do is drive up house prices. Immoral and sickening way to make money off other ordinary people's desperation. Rackmann every one.

I've said for year. If company's like wimpey homes can buy land and build to make a profit why can't the government/councils who usually own the land in the first place. If they did this would we be better of in the housing market or would they fek that up also.

[caytonmiller]

I have to say it makes me sick to read decent working class lads like Brin talking about getting rid of tenants. Letting property is immoral. How you dress it up as some kind of charitable undertaking cuts no ice with me. You're in it to make money and if you get burned all the better. Social housing (without ludicrous right to buy) is the answer. All the buy-to-let speculator mob do is drive up house prices. Immoral and sickening way to make money off other ordinary people's desperation. Rackmann every one.

Of cause I'm in it to make money. I'm not sure how many people go to work for fun. I'm also guessing the people who run the social housing you request also are in it to make money.

[crashbang]

Part way into my mortgage when I had one.
Interest rates hit about 12%

[great_fire]

Buy-to-let is not really an attractive proposition like it used to be.

A lot of people selling up.