Wednesday, Jul 18, 2007
Ickle Stewie Griffin reckons you're all LOSERS
Firstrung: First time buyers and tenants of rented property are the main losers - Assetz
Stuart Law, managing director of Assetz, says: "First time buyers and tenants of rented property are the main losers of another rise in interest rates this month. "While costs will increase for buy-to-let investors, landlords are definitely looking to pass these onto their tenants, benefiting from the increased demand for rentals from people who are simply unable to afford a mortgage in the current climate, as well as those who are not yet looking to buy their own property...
Posted by converted lurker @ 11:44 AM (159 views) Add Comment
20 Comments
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1. royston said...
"the increased demand for rentals from people who are simply unable to afford a mortgage in the current climate, as well as those who are not yet looking to buy their own property"? - "increased demand"? - Where do these people live now?
2. daft boy said...
Landlords looking to pass increased costs on to tenants ? dream on Assetz. Along my street there are over sixty "To Let" signs. Tenants will vote with their feet around here. Out of interest many of the same properties are also up for sale. I think landlords are start to feel a bit twitchy.
3. taffee said...
royston
agree.....housing crisis?..where do they all live...not on the streets not in caravans...where are the non-property owners?????
4. Juan King said...
If rents go up, young folk will simply move back in with their parents. I'm seeing it around the office where I work.
5. Davros said...
I'm one of the losers paying the 3rd of the cost of a mortgage for my house. Downer.
6. paul said...
You iz all loozaas!
We onz th'Intaaarnet!
We iz Assetz Boyz Ruleeeez!
7. Darrude said...
if people can't afford a mortgage how can the afford inflated rental costs.
8. tipping point said...
Stuart Law appears to no nothing about people who rent. He assumes were all clueless air-heads who are a sucker for a landlords sob story. If my landlord tried to push a rent rise on me id tell him I was moving out. I'd also point out to him all the empty flats down the road and that when I go he better sell the place if he doesn't want to be looking after an empty flat for 12 months.
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10. Blackheath said...
I think a lot of young tenants will consider alternatives. Well if you have a 2 bed 2 bathroom place you might as well reduce costs by 2 couples sharing. There is always the fallback of moving back in with the parents.
11. denzil said...
Funny Paul,
word-up to the assetz posse massive, like!
12. bidin'matime said...
Why do these people think that someone who can't afford a mortgage will be able to pay the landlord's extra mortgage interest??
13. paul said...
It's compltetely untrue of course - banks aren't stupid.
You know the big fat guy in the bank advert saying "for new customer oonly"? That's reflecting a general practice to squeeze locked-in customers (existing mortgage holders) in order to leave FTB rates low.
That's called looking after your future market share. And that's also why Da Assetz Boyz don't give any actual figures to back up their "assertionz" (sorry), because they don't exist ...
14. paulos said...
One thing that's always bugged me about this... if tenants can't afford to buy property, why are the landlords passing costs onto them? If we could afford to cover the mortgage outlay then we may as well just buy!
It's only worth renting if rent < mortgage repayments. In other words, it's stupid to rent from a recent BTL landlord and instead you should rent from a long standing landlord.
Which means that the most recent BTL landlords with 100% mortgages will be the first to bail out.
15. confused76 said...
This BTL thing is only creating a time delay in the burst of the bubble... and of course will make the fireworks more spectacular.
BTL = no fundamental value created + no barriers to enter = just a blip
16. doomwatch said...
Royston, spot on. BTLs don't know whether to have a sh1t, shave or a hair cut round Clapham.
In stead of counting sheep to get to sleep, I now just simply recall the number
of new for sale/to let combos cropping up outside those tired looking nooses.
17. Doofy said...
I think small time BTL landlords will struggle if they are only relying on the rental income, landlords who have already paid most of their mortgages off will be the ones that are making the real money
18. wage slave said...
My rent has only increased 2.15% after a year in the place. And this is in an area where I don't see too many for let signs up.
Ultimately rents are set by the market and this it's a myth to say that BTL landlords can increase rents to cover their increased mortgage costs.
If this was the case then why are so many BTL landlords agreeing to rents that are below their mortgage outgoings from the outset ?
19. Dandare500 said...
My rent has not changed for over a year and I have just signed a new two year contract at the same price. Not all rents will go up!
20. Randomkevlar said...
Just got another year renting a lovely apartment (with a garage) in old isleworth, west London, 1 minute away from the Thames, its a really lovely spot, when we first rented it we knocked the monthly down £25 since then the landlord has not even tried to up the rent to what he originally wanted in 2005? And this is in an area where you don't see that many places to rent!!!
Anyway I just don't get how tenants are worse off, you rent a place you can afford, if your landlord puts the rent up to much you can just leave or even (i believe) can go to some tribunal to see if the increase is fair.