“We’re seeing our members’ yields – their return on investment – go down, because it’s that much more expensive to buy a property, it’s that much more expensive to run a business, so actually where we are seeing the increases, it’s to cover things like increased tax, utility bills, cost of management, it’s not because they’re protecting the margin.”
Many of us have been left feeling powerless as rent and bills continue to rise and unfortunately, there’s not much that can be done, according to David Hannah. But there are ways to make the price hikes more manageable, he explains.
“Existing tenants have little scope to challenge rent increases,” Hannah tells us. “In most cases, tenants will be able to agree on a rent increase with their landlord by negotiation and generally this is the best route to follow.
“Most landlords are fully aware how their tenants, like all of his, have been affected by the cost-of-living increases and they are likely to be open to a discussion about finding an acceptable level of rent for both parties.”
Cornerstone Tax is the UK’s leading property tax advisers, specialising in Stamp Duty Land Tax. We’ve reclaimed over £15 million in overpaid SDLT in the last 12 months. Contact us for property tax advice, or to see if you are eligible to claim a refund from HMRC on overpaid Stamp Duty.