rent increases or decreases

[bigdaddy]

HI guys

sorry about earlier promo fo my business by the way , I have a question around here in Bishop Auckland area the general feel is for a standard two bed terrace the going rate for rent would be £400pcm maybe a little more if house is sought after . I get £475 for one of ours . we are now finding local agents are dropping prices down to below £400 ie between £325 and £385 to attract tenants. Im sure this is due to the cuts on housing benefits. cost to sign up a tenant into a property are high for most applicants eg bond first months rent admin fee . with this in mind are we heading for rent reductions in order to keep tenants ?

BD

[Melboy]

All DSS rents payable to the landlord are dropping or are about to drop in most area's of the UK.

There should be a guide-line rate of what the lccal Council are suggesting for the rental paid for DSS properties.

I don't do DSS but I am always ready to read about everyone's DSS experiences on here though.

I do have a friend who has a rental DSS flat and that rent will be reduced by £25 a month under the new terms and conditions.

[LLAW96]

The issue of what will or wont be paid through housing benefit is a red herring. The housing benefit service do not set the level of rent payable, and any shortfall between the contractual rent and the actual rent is still payable by the tenant. Aside from rent act protected tenancies (and in limited circumstances AST applications for a market rent), there are no rent controls, therefore it is market forces that dictate the level of rent achievable. Location will of course be an issue together with the general state of the housing market, and inflation. If you are to believe what is in the national press more people are renting due to the lack of affordable housing. It may be there is a glut of rental properties in your area conversely your agent might just want to encourage a quick let to assist their cash flow.