The law was meant to allow tenants to see the real rent up-front so they wouldn't waste time they didn't have on viewing properties then get pressured into paying more than they were expecting. That should have driven real rents down because people could skip things out of their budget upfront and know what they found for less was genuinely available for less. Instead, landlords are just displaying huge numbers they know they won't get, and totally obfuscating the real price.
It's a serious improvement, because it prevents drip pricing, which exploits human psychology to charge people more than they would have paid had they been allowed to judge the price from the beginning.
It still leads to price uncertainty which is inefficient for renters.
In spite of that, it will bring rents down, because advertising a massive rent will put a lot of people off - especially those who are primarily looking on rightmove and filtering. So landlords who do this will have a smaller pool of potential tenants, and so won't be able to charge quite as much.
At the end of the day, the rental property market is still a market. The point of it is that landlords try to get the highest price and renters try to pay the lowest price for something they accept. We need to realise while criticising the rental market or measures aimed at making it work better that this legislation was never intended to dismantle it and replace it with Soviet-style social housing for everyone, and how big of a change it would be to prevent landlords from charging what they think they can get away with one way or another.
Even if you think that the country would be improved by a change on that scale, I think it's good to acknowledge the very significant improvement the Labour government made to renters with this sorely-needed change to the rules. It puts on the path to being a country more like our peers where renters aren't second-class citizens and, even though renting may be expensive, at least it provides a more secure home.
So change the rules laws in your favor. Sitting on the sidelines does nothing. I'm not in the rental game anymore but I would support fair tenant/landlord compromises vs whats going on in the UK and in NYC.
But it has to incentivize both sides, rent freezes will not fix the NYC issue. It will make it worse. 60k+ empty apartments in NYC because the cost to bring them up to code isnt worth the squeeze. Better for them to take the loss.
Those 60k apartments would be a God send for so many people. How do we fix them up w/o bankrupting the landlords and the city coffers?
Have the city take over apartments that have been empty for over a year and sell them for cheap to individuals and families owning 0 homes, with the condition they fix them up within a timespan.
I don't care about the landlords. If they can afford to keep a property unused, they can afford to lose it.
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Maybe I've just been lucky, but in many years of renting I have never seen someone advertise one rent, then raise it before you close the deal.
how is that a loophole? is that not wat the law was meant to do?
The law was meant to allow tenants to see the real rent up-front so they wouldn't waste time they didn't have on viewing properties then get pressured into paying more than they were expecting. That should have driven real rents down because people could skip things out of their budget upfront and know what they found for less was genuinely available for less. Instead, landlords are just displaying huge numbers they know they won't get, and totally obfuscating the real price.
It's a serious improvement, because it prevents drip pricing, which exploits human psychology to charge people more than they would have paid had they been allowed to judge the price from the beginning.
It still leads to price uncertainty which is inefficient for renters.
In spite of that, it will bring rents down, because advertising a massive rent will put a lot of people off - especially those who are primarily looking on rightmove and filtering. So landlords who do this will have a smaller pool of potential tenants, and so won't be able to charge quite as much.
At the end of the day, the rental property market is still a market. The point of it is that landlords try to get the highest price and renters try to pay the lowest price for something they accept. We need to realise while criticising the rental market or measures aimed at making it work better that this legislation was never intended to dismantle it and replace it with Soviet-style social housing for everyone, and how big of a change it would be to prevent landlords from charging what they think they can get away with one way or another.
Even if you think that the country would be improved by a change on that scale, I think it's good to acknowledge the very significant improvement the Labour government made to renters with this sorely-needed change to the rules. It puts on the path to being a country more like our peers where renters aren't second-class citizens and, even though renting may be expensive, at least it provides a more secure home.
As always, they found a loop hole: reverse auctions are apparently still legal. I hope they fix this ASAP.
People mad about this need to understand:
"Don't hate the player, hate the game"
Otherwise they won't rent like in NYC because the tax write off is worth more than the renovation.
Sometimes you can hate both the player and the game.
How about hating the people that set the board/rules?
Divide and conquer
Yeah, the players are the ones who kept changing the rules to advantage them...
So change the rules laws in your favor. Sitting on the sidelines does nothing. I'm not in the rental game anymore but I would support fair tenant/landlord compromises vs whats going on in the UK and in NYC.
But it has to incentivize both sides, rent freezes will not fix the NYC issue. It will make it worse. 60k+ empty apartments in NYC because the cost to bring them up to code isnt worth the squeeze. Better for them to take the loss.
Those 60k apartments would be a God send for so many people. How do we fix them up w/o bankrupting the landlords and the city coffers?
Have the city take over apartments that have been empty for over a year and sell them for cheap to individuals and families owning 0 homes, with the condition they fix them up within a timespan.
I don't care about the landlords. If they can afford to keep a property unused, they can afford to lose it.
if the game designers couldn't see this being the optimal strategy they fucked up
Price gouging is legal in the UK?
Sort of. Only by landlords and large corporations.