Monday, May 19, 2008
Cry for help from Judy Heywood's career advisor
Times Online: Cry for help from debt-ridden middle class
The article starts off sensibly enough in the leading few paragraphs, but then as soon as she has everyone's attention, she starts spouting rubbish. She stoops to desperately talking up rental prices (thereby trying to talk up yields for property "investors"- and wait for the logic - according to Hometrack rents must be increasing, because people are not buying. This non-sequitur casually ignores the fact that there is a vast smelly throng of buy-to-let landlords being hammered by rising mortgage costs and falling rents. When the price of apples goes down, the price of oranges can only go up ... rright?
Posted by paul @ 12:14 AM (267 views) Add Comment
1 Comment
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1. quiet guy said...
"Its alert came as a survey for The Times found that people attempting to escape the property crash by renting rather than buying face increases of as much as 17 per cent this year."
What does this 17% increase refer to? The cost of living is certainly rising w.r.t gas, electric, food (and all the other things that don't seem to make it to official CPI) but I am happy to say that my rent increase over the last 18 months is 0%.
'The survey for The Times by Hometrack, the property data company, found that the cost of renting a home rose on average by 6.15 per cent in the year to April. In hotspots such as Oxford, Birmingham and London, rents rose by 17, 16 and 14 per cent respectively, while in Cambridge and Sheffield, tenants are paying an average 10 per cent more than they were in March last year. Richard Donnell, the director of research for Hometrack, said: “The rental sector is a waiting room for the housing market and more people are being pushed into that waiting room just as rents are being forced up.”'
Well if Mr Donnell says so, then it must be true. It's strange that I don't see any sign of these huge rent rises in Hampshire.
"A survey by Paragon, a buy-to-let lender, suggested that rents for detached homes have risen by 30 per cent, compared with an average of 12 per cent across all housing types."
That's odd. I can smell bull***t.
"In Milton Keynes, where the rent on an average £140,700 two-bedroom home is about £177 a week, it would cost £178 to buy with a 15 per cent deposit and an interest rate of 6 per cent."
A few more details about this rather generous sounding mortgage arrangement would have been appreciated. Why do you think this "buy" has been described in such vague terms?
This article seems to start off talking about problems with debts and then switches to rent ramping - all in all rather a nasty piece of work.