Why do Landlords feel entitled to rent increases?

"cruxifying"? Go easy on the hyperbole, will you? If LLs are leaving because some nasty people wrote or said some nasty things about them, then they need to grow up.

The tax rates haven't increased as far as I'm aware so I don't see why that has been a big reason for LLs leaving.

As I've said numerous times now, making it easier for LLs to evict non-paying tenants would make a huge difference. Providing tax breaks would do little or nothing.

If you're an existing LL, your profitability didn't change when REITs entered the market and they wouldn't change if those tax breaks were removed in the morning. I see how a LL looks at a REIT and sees that it's unfair but the LLs profitability is unchanged by the sweet deal REITs get

Well when you have people who can get a good ROI and your getting a p1ss poor one and the risk for you has greatly increased due to tenant laws you dont have to be a genius to monetize your asset using the current house price. As I say its no longer attractive to have be a small landlord

Agreed on first point that tax breaks would just push up prices.

On second point, easier eviction of non-paying tenants would also push-up prices. The price a REIT/Individual Investor is willing to pay is based on the yield adjusted for the risk. The current biggest risk is a non-paying tenant. If that risk is substantially reduced investors would be willing to accept a lower yield and thus push up prices significantly.

Have you read the thread?

I never said that. LL leaving the market is the problem. small LL's

If you think it’s a money making machine, then clearly you’re not that familiar with it.

I bought my apartment as a home. Thanks to the financial crisis I could not afford to sell it when I needed to move for work. I suppose I could have stayed put, stopped paying my mortgage and lived off social welfare. Instead I let it out and rented elsewhere myself. Usually the rent has covered costs but I haven’t made much profit from rental income. Now that house prices are up, I’ll sell as soon as my tenants leave but I don’t want to kick them out. Please, tell me again how lacking in morals and principles I am??!!

Why don''t you have job for the last 3 years? You do understand landlords pay a lot in taxes that helps pay for people unable or not working? If somebody is earning more than you what is your problem with that?Not sure why you are so angry. Ignorance of how economics of the rental market is one thing but what is the anger about?

I recognize his style. Hes back :)

He has been in the property threads for a while now predicting a crash. Keeps moving the date. You know him well :)

If you are going to invest in any traded stock, you cant measure success in a 2 month timeframe. See what the 3-5 year capital gain/loss is like.

A 17% reduction in the first 2 months of the year is also an indication of increased value for investors moving into REIT investments at the moment. Lets see if its still down 17% even 12 months from now.

Inflation is predicted to run at 4-6% over the next 2 years. Rent increases in RPZs will be capped at 2%. This constitutes rent decreases across the board in real (albeit not nominal) terms.

This combined with increases in the value of the underlying asset which will run well above 2% means an ongoing annual reduction in yield. Which means inevitably we reach a point where better yields are available for the capital value of the equity in the property elsewhere. At which point it makes sense to sell up rather than continue to rent, especially since those alternative yields can probably be achieved at significantly less risk and less effort/hassle.

So don't be surprised when the supply of rental accommodation continues to reduce.