Do you think landlords will put rents down if the interest rates go down?

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Nocturnalist1970@reddit

Interest rates falling just means things are not increasing in price more slowly. Common misconception. Only negative inflation rates ie deflation should lead to prices falling.

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Clever_Username_467@reddit

I think you're confusing interest and inflation because they both begin with I.

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Lily7258@reddit

Because why would they take less money when they could take more money?

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There's quite literally no incentive to them voluntarily lowering rents - they'll pay lower interest rates, keep the rents as high as they are now and pocket the difference. See also, energy companies right now making record profits and not reducing prices even though they could. Same will happen with inflated food costs if we ever get out of this cost of living crisis. Rental prices in this country have gone fucking bananas and needed to be at least partially regulated 10 years ago. Market value basically means fuck all and just doesn't go down, despite massive accelerating based what even average incomes can afford.

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Delduath@reddit

They make more money if they keep the rent high. They have no pressure to lower rent. There's nothing else to it.

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terryjuicelawson@reddit

No chance. They may wait a little longer to put the next rent rise up but they aren't going to do anyone a favour as long as it gets paid.

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QuietAnxiety@reddit

HAHAHA Sweet summer child.

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NandosCEO@reddit (OP)

But if landlords said they "had to" put up the rent and then the interest rates fell wouldn't it be the right thing to do?

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Pirate-Peter225@reddit

Stop talking and start reading some of the comments Rents aren’t going down ever even if the interest rates drop to 0% - way too much demand

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NandosCEO@reddit (OP)

You dont need to be rude mate

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Pirate-Peter225@reddit

Sorry mate didn’t mean to come across rude 🤝

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QuietAnxiety@reddit

That's not how markets work. Some landlords had to put up rent whereas others did not but they did anyway. So a new market price is set, those that could reduce prices won't because the others won't. It is all about monet. Landlords are scum.

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LieQuirky3751@reddit

No, we're not.

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QuietAnxiety@reddit

Aww does the owner of a high value asset leaching off people in society feel misunderstood? Bless.

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LieQuirky3751@reddit

Aw. What would you like me to do with a property I fully own and have paid for? Give it away? I'm providing a home for people who need it. I maintain the property well, ensure it's safe and warm, and keep the rent at a manageable level for my tenants. I'm not impacted by the rate rises, so I haven't felt the need to increase it, even though I could to meet the local market rate. If I sold it, the likelihood is that a property investor would just buy it and rent it out themselves.

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QuietAnxiety@reddit

Do you want a round of applause? If the rent you charge is more than the local housing allowance you are profiteering off of basic human need. I can see how you justify being a leech to yourself, but the reality is obvious.

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LieQuirky3751@reddit

Look forward to hearing what you would do if you found yourself with a spare property because of a change in circumstances, eg, buying with a new partner.

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smoopdogg@reddit

Landlords don't have a monopoly on "profiteering off a basic human need". You pay for food, don'tcha? Man, your employer is really taking advantage of your need for money by making you do all that work! I can't believe you have to pay the water company for water... Almost everything you need to live is generally owned by somebody you have to pay. That is how the world works and has done for a very long time.

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QuietAnxiety@reddit

Who said they had a monopoly? I didn't. Obviously. What are you talking about? Wind your neck in.

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NandosCEO@reddit (OP)

>I maintain the property well But isn't it the tenant who is doing that? >ensure it's safe and warm But that's just meeting a basic expectation? I wouldn't highlight it. It's like a restaurant being proud because the food is safe to eat. >If I sold it, the likelihood is that a property investor would just buy it and rent it out themselves. That's justifying something because something worse could happen lol

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imminentmailing463@reddit

>It is all about monet Great painter tbf

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QuietAnxiety@reddit

Tru dat. That's all landlords want, a monet of everywall paid for by tenants.

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BaBaFiCo@reddit

For things to go down there would need to be negative inflation. But if there's negative inflation then we have wider economic problems. The idea is to slow down increases, not reverse them.

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Kooky_Shop4437@reddit

Inflation & interest rates are separate things in this context though. Your logic is flawed and there's no relation between the two in this situation. A drop in inflation means that the prices of things are still rising, albeit slower. A drop in interest rates on a BTL mortgage means the cost of owning said BTL is absolutely lower. If the excuse for raising rents was a higher interest rate & higher cost of ownership/running a rental, then a reduction in rent should be expected come mortgage renewal time.

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Delduath@reddit

If they cared about doing the right thing they wouldn't be landlords.

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MistyMushka@reddit

Hahahaha no.

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revvend7783@reddit

Of course, they'll give tenants a free month in winter to help pay their gas bill as well.

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Donkey__Oaty@reddit

No. Landlords are greedy selfish bastards and put rent up by 40% when there was a 1.75% increase in the interest rate. Landlords do not care about how much more money they can squeeze out of you.

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FelisCantabrigiensis@reddit

Not unless rental demand goes down, i.e. they have to compete for renters.

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DrH1983@reddit

lol no. Zero chance of that ever happening.

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PipBin@reddit

No. Listen to the landlord on this: https://www.bbc.co.uk/sounds/play/m001pdy6?partner=uk.co.bbc&origin=share-mobile (The second person they speak to) He moans on about the cost of living and they say to him about putting down the rent because other people are struggling. He says that it doesn’t work like that and that prices will naturally go up, like it’s some kind of natural phenomenon. They ask him how and he blames it on the rental agents. He’s acts like it’s someone else’s fault.

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iambeherit@reddit

Lol. Lmao even. Fucking lol lmao.

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insomnimax_99@reddit

No. The market forces that cause price increases don’t always cause price decreases when they reverse (and vice versa). Eg, interest rates going up causes price increases, but interest rates going down won’t cause prices decreases. What does cause price decreases is increased competition and supply. Unfortunately, due to the housing crisis and lack of housebuilding, this probably isn’t going to happen any time soon.

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LettuceforPM@reddit

If you think landlords are ever going to do anything for the benefit of their tenants then I have really bad news for you

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Suitable-Length4255@reddit

That’s not how markets necessarily work. It might shift the supply curve but there’s so many other factors.

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Smeetsie11@reddit

Absolutely not.

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OkChampion3632@reddit

I’ve not put up my rent since 2008, but I think I’ll need to now.

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SendAwayThe_Tigers@reddit

Hahahahahahahahahahahahahahahaha no. If anything the scummy vultures'll find a reason to raise them again. (Jello Biafra was right.)[https://www.youtube.com/watch?v=aCiYmCVikjo]

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WhiteDiamondK@reddit

Your lease won’t go down, but there may be a point where new properties coming to market may adjust down to match the market… it only takes a couple of landlords to undercut the market to change rental valuations. But I wouldn’t hold my breath.

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Hot_and_Foamy@reddit

No. The only reason for them to lower prices is if they can’t fill the property.

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TheCatOfTomorrow@reddit

Loooool no

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AngryTudor1@reddit

It doesn't work like that, as landlords are locked into mortgage deals for 2-5 years. Landlords would put rents down only if the market rate went down. The high interest rates they are locked into, and this government's hostility to private landlords who are not millionaires, mean so many are selling up that there is little chance of market rates going down.

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caractacusbritannica@reddit

No. Landlords are literally the worst. They aren’t offering a service, they add no value. They have monetised your need for shelter. The greater the need the higher the price. Rent ain’t going down.

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