Wednesday, Mar 03, 2010
Good news, we are all going to have to pay higher rents!
Express: SUPPLY AND DEMAND BOOST RENTS
"THE good news is that rental incomes across the UK rose by 1.2 per cent to £814 a month in February as the supply of properties available to rent fell to a 15-month low, according to new figures." -------Im speechless.
Posted by waitingtobuy @ 11:08 AM (2346 views) Add Comment
41 Comments
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1. alan_540 said...
It's only good news if you've got a BTL portfolio to upkeep.
2. mark wadsworth said...
They're trying to stampede people into buying, as ever.
3. debtfree said...
It's being reported as good news in the same week that wages for 16 million workers won't be rising.
What sort of society is this ?
Suck the blood out of em until they're broke.
4. icarus said...
Corn Laws mentality. Raise the price of grain-growing land, raise landlords' income, they will employ more servants, who will spend their wages locally. The landlords will graciously give their time to the local health board, school board and charity board (for those who can't afford rents) and will themselves not be a burden on these establishments since they have their own doctors and their sons and daughters will be attending schools outside the district.
5. timmy t said...
I moved into rented in Dec 08 for an initial 15 months. Just agreed to extend at 150/month less than they were asking 15 months ago...
6. Thecountofnowhere said...
That's the worst news I've heard this year !!!
7. vacuouspolitician said...
Good grief....£814 a month !
Is this fact or fiction?
£300 tops - anyone paying more than this needs their head seeing to...unless of course you fancy renting out a mansion with land...
Madness.
8. mark wadsworth said...
Vacuum Politician, I'm slightly embarrassed to admit that I'm paying £20k a year in rent. But it's a nice big house in a nice area etc. But as prices round my way are drifting down by about £50,000 a year, what else can I do?
9. inbreda said...
yes - must admit - I am paying £1050 pm for a place that could probably get £2000 pm rent. Worth about £500000 at least to buy. i.e. even with historically low interest rates they might just be able to cover the mortgage on teh full value. I am paying half what it would cost me to buy and pay the mortgage. Landlord inhereted so not bothered about these calcs.
Unfortunately where I am, less than £1000 pm doesnt get you anything habitable. Not a nice place at all, unless you got money!
10. Crunchy said...
The futile concept of high house prices being good for the economy. More taxpayers rental support to feather the banking nest.
11. holyroller said...
@Timmy - I moved at the end of last year to a bigger, better house and paying £100 less a month. So a 10% decrease for me. When I rented the previous house it was the only place available that was suitable. This time I was able to pick from around 5 suitable houses. I have rented since 2002 and haven't noticed any major rent increases since then, although I am renting a bigger house now.
12. vacuouspolitician said...
Key thing is you're happy and it makes financial sense to you.
Think I must be very fortunate - lovely area with a very low rent.
13. righttoleech said...
Anyone got a scraper?.......there's some bone marrow left on this one.
14. titaniccaptain said...
Where I live it costs less than £600 PCM for a great house of character with great views that you can leave the front door open on 365 days a year. If any of you are living in an are that you can't leave your front open door all year round and are paying more than £700 a month for then you need your head's read.....seriously!
Now that's what I call a good area.
I leave my car running outside my house to defrost it on cold mornings.......here is a similar property for value.
http://www.rightmove.co.uk/property-to-rent/property-24584038.html?locationIdentifier=REGION^15643&radius=3.0&pageNumber=1&backToListURL=%2Fproperty-to-rent%2Ffind.html%3FlocationIdentifier%3DREGION%255E15643%26radius%3D3.0
I have no Idea why your all paying so much in rent........personally I would move to the green green grass of Wales where crime and house prices are considerably lower.
The house above is not the exception it is more like the rule.
Here are some more examples. Some of these houses are in VERY VERY good areas.
http://www.mccartneys.co.uk/content/Property/Lettings/General_Lettings_Search/#liveListe58899da80d430ba127353c3ba15467f
15. smugdog said...
TC, is it not the suicide capital of Europe around your way? No wonder.
You'll come home one day and find some smack head hanging from the Tudor beams in front of the cosy stone wall grate.
Or gassed up in your old banger outside.
Thanks, but no thanks.
16. crash n burn said...
@ Titanic Captain... Sounds nice - shame London life isn't like that.
Oh and be careful about leaving the car running - check this article out: http://www.telegraph.co.uk/motoring/news/7356036/Motorists-face-fines-for-leaving-engines-running.html
17. 51ck-6-51x said...
TC,
Bit too far to commute to London from there.
18. 51ck-6-51x said...
... although you may well say, "yes, you work in London, you need your head examined.", well, yes that may be :)
19. inbreda said...
TC - in all seriousness I would consider moving there - just have to convince the missus - plus dont really know where to start looking
20. a saver said...
Vacuous pol, you must be living in a low-rent area. I rent in Fife, 12 miles out of St Andrews and there's hardly anything available to rent in the area. Prices in St A's itself are ridiculous, at least £750 a month.
I pay £525 a month for a 3-bed terraced ex-council house with no double glazing that badly needs doing up, in a little village with very poor transport links.
I thought the HPC would be well underway by now and I could buy without feeling that it was the top of the market, but I'm having to renew all my fixed bonds as they expire, getting a lower interest rate each time.
After getting snowed in this winter, due to the roads being like ice rinks, and eating tinned food for a week I am desparate to move, maybe back overseas is the best option....
21. phdinbubbles said...
"Here am I, as rich as Croesus, married to the most beautiful woman in the world, but what I'd give for a pint and a shag up against a wall in Merthyr."
Richard Burton
22. titaniccaptain said...
@Smugdog
Old banger? its 2 years old.........lol
Suicide capital? errrrrm No that would be Bridgend over an hour away from me and Bridgend is a sh*t hole yes.........very depressing but those kids were in some kind of strange suicide pact bless them. But doing a quick bit of research this popped up which I found quite shocking.....food for thought.
http://www.express.co.uk/posts/view/49330/Suicides-linked-to-phone-masts-
As for drugs we are like sleepy hollow compared to many of the "Good" areas in England :)
By the way.........I like your sense of humour
@Crash n Burn
Thanks for that........again one of the good things is we don't have many traffic wardens
@666
"yes, you work in London, you need your head examined.".................you said it not me :0)
23. holyroller said...
I have a big family and live on a private estate in Scotland. £900/month isn't bad for the area I'm in and its safe as well.
On the plus side, because its a private estate, I don't pay for water and sewage and also the council tax isn't unreasonable. On top of that, we are surrounded by 26,000 acres of land and have a private loch with full fishing rights (not that I like fishing).
24. titaniccaptain said...
@ PHD
There is great charm in Merthyr.......it is an acquired taste........I have been through fazes of loving and hating the place...I got to see the darkest side of that town (I drove taxis and worked on the doors there) but there are hardly and knives or guns.....drugs used to be a problem but even that has changed to a recognizable hand full.
The town has a reputation for fighting with fists and is quite gentlemanly about it.
But for a mad night out your going to be hard pushed for better. I have ended up in all sorts of trouble and beds but never in the cells (Except for that GBH charge with a cricket bat which I was let off for because of self defense).....
But anyway I live quite a way from Merthyr Tydifl.....
@Inbreda
Crickhowell is great and the most southern/western parts of Pembrokeshire are unbeatable.......Brecon is also pretty good. I would never live outside of Wales but as a preference the South Wales Valleys are not the best.
25. titaniccaptain said...
p.s.
Avoid Llandridnod Wells in Mid Wales.........it looks beautiful and would have been one of the country's finest towns in its hay day but in recent times a load of idiots from the midlands have moved there and is quite rough.
Such a shame the architecture is something else.
26. phdinbubbles said...
TC
I spent the first part of my honeymoon on the north coast of Pembrokeshire last year - it is rather nice round that way I have to admit.
27. titaniccaptain said...
@PHD
I would move there in a heartbeat...........
I wrote some articles on my experiences in West Wales and included some snaps of mine.....
http://www.economicvoice.com/550/500550#axzz0h7ckGqPg
http://www.economicvoice.com/st-davids-pembrokeshire-and-a-pilgrimage-of-two-drunken-wasters/5001594#axzz0h7dGZu7y
28. fjcruiser said...
well this article is totally contradictory.On one hand there are less properties to rent because these properties have been sold. Surely it means there are less tenants so the rents should come down....ramping the market again but which one, the rental or the buying ?
29. mark wadsworth said...
House prices are rigged by the government, but not rents.
(Sure, open market rents would be slightly lower if we liberalised planning laws, built more social housing and had Land Value Tax, but not hugely so (maybe 10% or 20% cheaper?).)
As my salary in London is a lot higher than it would be in Wales, my landlord thwacks off the extra bit I can earn - basically he is charging me a fee for the right to do a well paid job and the right to live within walking distance of my kids' school and so on.
30. str 2007 said...
fjcruiser
Weren't our Border Patrol Officials on strike recently. Yes apparently we do have such a thing.
31. titaniccaptain said...
@Wadsworth
All sounds too much like a huge rip off to me.....all I can say is this :-
http://www.youtube.com/watch?v=nKPUbyfIOPM
32. mander said...
It is not all bad news if properties previously available for rent are offered now for sale unless these properties are bought by investors and not renters. We hardly get any transparancy with regards to who is buying but this is a case of manipulating the market and should get investigated by OFT.
33. ontheotherhand said...
MW - Rents are rigged indirectly along with house prices because renting is an alternative to owning. If the price of houses collapsed, then rent would become relatively expensive compared to 'renting it from the bank' = mortgage. So a typical 4.5% gross yield on a buy to let today would become a 9% yield if house prices halved and rents stayed where they are. In the medium term, therefore, the interaction between rental yields and interest rates can provide a floor for house prices. Sure, things will overshoot in a panic, but I think it a pretty safe bet to buy rather than rent when yields go above inflation plus 5%. I wonder if a chart would show the same historically?
34. mark wadsworth said...
OTOH, there is an almost cast-iron relationship between rents and wages, it hardly ever varies, rents and wages are the Maypole around which house prices dance, i.e. if price-to-wage ratio doubles, then price-to-rent ratio also doubles. The Nationwide sometimes include the chart in their house price surveys, the two lines more or less overlap.
I've seen charts for other countries (where rents are much more important) and the same holds in countries where rents are not regulated.
35. icarus said...
You get a bubble when prices rise faster than yields, so a house-price bubble is a rise in the price-rent ratio.
36. O'reily said...
I pay 500 euros per month (exclusive of heating) for a spacious unfurnished flat by the edge of a lake in a nature reserve - in Holland. Time to emigrate anyone?
Renting is usually from large housing associations and renters here have rights that would make UK renter's eyes bulge out. Pets allowed, decorate the place how you like it, no time limit etc....... I think the idea in GB mind is to have something similar in UK with only a few huge successful BTLers at the top of the pyramid as someone said earlier. I remember GB actually saying this some time ago.
The cycle will come round again though, as here more people are starting to buy rather than rent.
37. clockslinger said...
Icarus @ 4, funny you should say that because I was just thinking that this country seems hell bent on recreating the "mercantile economy" with all the evils of laissez faire. So many cities have a shade of Hogarth prints about them...Gin Lane / any city centre on a Friday or Saturday night with a "happy" hour. Maybe I just see it in my job, but it is noticable that this doesn't occur as much elsewhere in Europe/Scandanavia.
38. phdinbubbles said...
Cheers for the links TC@27
We stayed in a cottage between Fishguard and Newport - the walk around the peninsula at Dinas Head was stunning.
39. titaniccaptain said...
I am looking to buy some farm land in West Wales.....just put an offer in.....fingers crossed.
40. titaniccaptain said...
oops last comment was for PHD
41. Landylawd said...
Hmm.... some interesting comments there, but I would much prefer it if you could refrain from inviting people to move to Wales, because if more and more people come, then the lovely hills and fields will be covered in chicken hutch housing estates, the roads will be cramped and gridlocked all year round and the villages will merge into sprawling towns- leading to higher crime rates. Best keep Wales a secret I say.