Landlords' Rental Incomes Hit New Record

[737]

http://www.paragon-mortgages.co.uk/mortgag...August%2005.pdf

Rental income has increased by 2.83% to

reach £10,835 this month, the largest

increase since November 2004, taking rents

to a new record level.

• In July, Wales had the highest rate of growth

in terms of rental income, reaching £9,878.

The North and Yorkshire also experienced

an increase in rental incomes to reach

£6,734 and £10,495 respectively.

• Property values continued to climb in July,

rising by 3.23%.

• Property values increased in seven out of

ten regions this month.

• Average yields now stand at 6.67%.

• The South West, North and Greater London

all saw increases in yield this month, to

6.96%, 6.69% and 5.83%.

• Total returns remain relatively stable at

22.29% this month.

• With total returns of 46.03%, Yorkshire has

again claimed the regional top spot, with the

North West following behind at 41.73%

[Marina]

http://www.paragon-mortgages.co.uk/mortgag...August%2005.pdf

Rental income has increased by 2.83% to

reach £10,835 this month, the largest

increase since November 2004, taking rents

to a new record level.

• In July, Wales had the highest rate of growth

in terms of rental income, reaching £9,878.

The North and Yorkshire also experienced

an increase in rental incomes to reach

£6,734 and £10,495 respectively.

• Property values continued to climb in July,

rising by 3.23%.

• Property values increased in seven out of

ten regions this month.

• Average yields now stand at 6.67%.

• The South West, North and Greater London

all saw increases in yield this month, to

6.96%, 6.69% and 5.83%.

• Total returns remain relatively stable at

22.29% this month.

• With total returns of 46.03%, Yorkshire has

again claimed the regional top spot, with the

North West following behind at 41.73%

<{POST_SNAPBACK}>

Which country are they talking about? It's not the one I live in.

[HPCheese]

Property values continued to climb in July,

rising by 3.23%.

From what I can gather they're talking about landlord property values i.e. the estimated value, or possibly 'bought-for' value of properties owned by BTL landlords/speculators/clowns (delete as appropriate). The whole thing's very sketchy and they don't say where they got their data. Correct me if I'm wrong, but sounds like bull to me.

[London-loser]

Over the past year, rents in Yorkshire have risen by 36.7%. Landlord property values in the region have increased by 38.6% since July 2004 to £143,684.

I've always found Paragon's numbers to be dodgy... but does ANYBODY really believe that rents in Yorkshire have risen by anything like this amount?

[mhifoe]

I've always found Paragon's numbers to be dodgy... but does ANYBODY really believe that rents in Yorkshire have risen by anything like this amount?

<{POST_SNAPBACK}>

Their figures really are comical. They clearly just take their figures directly from mortgage application forms without checking whether the rents are realistic.

Looking at their website, they will give you an 85% mortgage at 6% and they require the rent to be 125% of the interest only payment.

Their average house price is 162000.

85% mortgage of 137700.

Monthly payments of £688.

Therefore anyone who wants this mortgage must claim a rental income of £10328.

Their 'average rent' figure is £10835.

I doubt there is a single £160k property in the UK that could actually achieve a £900pm rent. Near me, a property worth this month typically rents for £650pm.

[Time to raise the rents.]

I've always found Paragon's numbers to be dodgy... but does ANYBODY really believe that rents in Yorkshire have risen by anything like this amount?

<{POST_SNAPBACK}>

Since you ask..... I do.

[sign_of_the_times]

Since you ask..... I do. 

<{POST_SNAPBACK}>

well stumpy, I live in Yorkshire and my rent has gone up by.........>>>>>> zero

[Marina]

well stumpy, I live in Yorkshire and my rent has gone up by.........>>>>>> zero

<{POST_SNAPBACK}>

But Sweden based TTRTR will have a much better idea than you, he's a landlord.

[brainclamp]

You can continually deny the spectre of rising rents, but this is likely to carry on as I foretold in my thread - rising rents in the SE, then the rest of the country.

Society is splitting into burdened tenants pinned down by taxes (which will be enforced by ID cards) and also seeing rising rents and landlords collecting it with large tax breaks (which you are also paying for). A large amount of the immigration I can see around me - and it has gotten a lot larger than last year possibly through chain migration - is in simple bodies with little skills to add to the production of goods and services in the economy. It doesn't matter as they are rents paid to landlords through your taxes.

Eventually as consumption alters, and unemployment and competition for your income stream rises, connections will determine your advancement in society rather than merit. The same is true in all inherited wealth/equity societies.

[sign_of_the_times]

You can continually deny the spectre of rising rents, but this is likely to carry on as I foretold in my thread - rising rents in the SE, then the rest of the country. 

Society is splitting into burdened tenants pinned down by taxes (which will be enforced by ID cards) and also seeing rising rents and landlords collecting it with large tax breaks (which you are also paying for). A large amount of the immigration I can see around me - and it has gotten a lot larger than last year possibly through chain migration - is in simple bodies with little skills to add to the production of goods and services in the economy. It doesn't matter as they are rents paid to landlords through your taxes.

Eventually as consumption alters, and unemployment and competition for your income stream rises, connections will determine your advancement in society rather than merit. The same is true in all inherited wealth/equity societies.

<{POST_SNAPBACK}>

how come its all "you" and "your" in every one of your posts? are you not affected by any of your "predictions" then???

btw, can you lose the scary avatar.....gives me the creeps! is it a picture of the scottish parliament or the multi-storey where you kip down at night?

[North London Rent Girl]

You can continually deny the spectre of rising rents, but this is likely to carry on as I foretold in my thread - rising rents in the SE, then the rest of the country. 

Society is splitting into burdened tenants pinned down by taxes (which will be enforced by ID cards) and also seeing rising rents and landlords collecting it with large tax breaks (which you are also paying for). A large amount of the immigration I can see around me - and it has gotten a lot larger than last year possibly through chain migration - is in simple bodies with little skills to add to the production of goods and services in the economy. It doesn't matter as they are rents paid to landlords through your taxes.

Eventually as consumption alters, and unemployment and competition for your income stream rises, connections will determine your advancement in society rather than merit. The same is true in all inherited wealth/equity societies.

<{POST_SNAPBACK}>

But but... ! Going into the fourth year in this house we gave in and allowed the landlord their first ever rent increase - a whole 2% (£10 a week on 485 squid - what's that?). We could have refused again but it just seemed churlish. The rent on this already reasonably priced house has, after all, fallen in real terms over the past 3 years - by some amount that I can't quite be bothered to work out. We'll maybe give them another 2% in three years' time. If we feel like it.

Dunno where these rents are going up but my part of North London it ain't.

[737]

I can only imagine that these rental yields in Yorkshire are from properties in the less desirable areas of cities or towns and where the landlord is packing in large families of recently arrived immigrants paid for by the local authority. Outside that area and band the yield on a £143,000 property would be nearer to 4 or 4.5% maximum (in my area anyway).

Edit: I wonder if Paragon have to justify their lending criteria to underwriters or maybe the FSA?

Edited August 31, 2005 by 737

[property flipper]

The rise in rents may be due to a small mortgage book in that area, and landlords selling rough houses in favour off new city centre flats which acheive more rent.

[eurows]

I live in Yorkshire and I can show numerous examples of rents going..... DOWN

I put an advert in Huddersfield Examiner for a house to rent for 12 months in Brighouse. (don't like dealing with EA)

I got three calls last week. One new build invester. desperate to cover his mortgage. Had 3 bed new build on at £900 per month. Would accept £700 if I signed for 12 months. I had a feeling I could get it for £600.00 if I had of wanted it. There are many more on this new build estate at £900.00 and not going.

http://www.rightmove.co.uk/viewdetails-772...a_n=1&tr_t=rent This one has been £1100.00. Its now £1000.00

http://www.rightmove.co.uk/viewdetails-786...a_n=2&tr_t=rent This one has been £1100.00 its now £900.00

http://www.rightmove.co.uk/viewdetails-444...a_n=3&tr_t=rent You can take any pick of them on this estate and offer what you like. Loads of BTL competing

http://www.rightmove.co.uk/viewdetails-830...a_n=5&tr_t=rent Take any pick of 50 or so on this complex. Every EA whithin breathing distance of Huddersfield has one or more of these.

My wife spoke to one EA who said houses to let over £750 in this area. FORGET IT.

And speak to anyone in Leeds and you can have your pick of 1000's of flats with your own prossie.

RENT GOING UP _ DON'T MAKE ME LAUGH

[Guest]

Society is splitting into burdened tenants pinned down by taxes (which will be enforced by ID cards) and also seeing rising rents and landlords collecting it with large tax breaks....

Sorry, my friend meant to say burdened homeowners pinned down by taxes that can't be raised in case they miss their mortgage payments causing a house price crash through reposessions, whilst Gordon Brown posting under the code name "brain clamp" and his faithful VIs try to wring the last dregs of the housing boom by attracting middle class numpties with more money than sense into the landlording profession in time for a slew of new taxes in the 2007 budget.

That should tide the public sector spending over until British business picks up from where the Great Internet Slump left off...

[the end is a bit nigher]

Since you ask..... I do. 

<{POST_SNAPBACK}>

ROFLMAO!!!!!!

[brainclamp]

The burden?

Just one future expense item for you (and me) : We have to pay £26,000 in real inflation adjusted terms - just for public sector Joe's and Jills pension. Whats your pension like? There are a lot more future expense items out there.

To really get in on the BTL boom meant you had to be connected to new labour, as the mass immigration policy was hidden until they belatedly admitted it and then expanded it! Knowing that, and its economic effects, rather than productive work or investment has been the difference between being a wageslave or a multimillionare!

I know reports of rising rents are the scariest thing, as they will raise the cost of housing still further if the base rate stays low. But you shouldn't discount them as untrue. Combined with the public worker subsidies and investor tax breaks a horrific picture emerges for the future FTBer.

I expect that by 2008 people will have to start paying thier ID card/existance tax, and register to be scanned by the government. The government are still going ahead with this scheme even though its out of the news.

The chances that by 2010 in 6 years, people will be paying large taxes under ID Cards with the same pay while rents eat into you and houseprices have risen further.

[Guest]

You're assuming they can implement the IT for this ID Cards project, and deliver it on time. The British Government don't have a stonking track record on public sector IT projects. Take a look at Computer Weekly over the years. And I'm not talking about projects requiring rollout of serious new technology which biometric ID cards will.

Besides, the estimate for the project was £6bn originally, however this was rubbished by LSE. Who were subsequently rubbish by New Labour in true NL style if I remember right.

http://www.lse.ac.uk/collections/pressAndI...FinalReport.htm

All this is irrelevant since we have no money anyway. Why else did GB lose his credibility back-extending his economic cycle?

From a totally unbiased source, we have...

http://www.conservatives.com/tile.do?def=n...e&obj_id=124016

[737]

I live in Yorkshire and I can show numerous examples of rents going..... DOWN

http://www.rightmove.co.uk/viewdetails-444...a_n=3&tr_t=rent You can take any pick of them on this estate and offer what you like. Loads of BTL competing

<{POST_SNAPBACK}>

Next door to the notorious Sheepridge estate and it'll certainly be convenient for your local crack dealer or prossie!!!

On a more serious note, Paragon's press agent will be feeding these figures to the media who may lazily cut'n paste them into their 'story' without questioning the figures!

Edited August 31, 2005 by 737

[VacantPossession]

You can continually deny the spectre of rising rents, but this is likely to carry on as I foretold in my thread - rising rents in the SE, then the rest of the country. 

Society is splitting into burdened tenants pinned down by taxes (which will be enforced by ID cards) and also seeing rising rents and landlords collecting it with large tax breaks (which you are also paying for). A large amount of the immigration I can see around me - and it has gotten a lot larger than last year possibly through chain migration - is in simple bodies with little skills to add to the production of goods and services in the economy. It doesn't matter as they are rents paid to landlords through your taxes.

Eventually as consumption alters, and unemployment and competition for your income stream rises, connections will determine your advancement in society rather than merit. The same is true in all inherited wealth/equity societies.

<{POST_SNAPBACK}>

Oh...the inevitable "I" word issues forth from brainclamp as usual Shame Brainclamp, you were doing so well in restraining yourself, but inevitably, and even though it is the third item/reason on your list we all know you meant it to be the first, yes folks it's immigration again. You know the form....repeat it often enough and it's true...apparently...because BrainClamp told you.

But ironically you are wrong on any level, because I have just completed a marathon tour of the entire Southern Half of the UK (on other business) and I happened to check out a huge number of prices of rents. They ARE ALL going down. There is not a single county I saw with rising rents. Some, including Sussex and Surrey, have fallen pretty spectacularly.

Wrong again BC!

VP

Edited August 31, 2005 by VacantPossession

[VacantPossession]

http://www.paragon-mortgages.co.uk/mortgag...August%2005.pdf

Rental income has increased by 2.83% to

reach £10,835 this month, the largest

increase since November 2004, taking rents

to a new record level.

• In July, Wales had the highest rate of growth

in terms of rental income, reaching £9,878.

The North and Yorkshire also experienced

an increase in rental incomes to reach

£6,734 and £10,495 respectively.

• Property values continued to climb in July,

rising by 3.23%.

• Property values increased in seven out of

ten regions this month.

• Average yields now stand at 6.67%.

• The South West, North and Greater London

all saw increases in yield this month, to

6.96%, 6.69% and 5.83%.

• Total returns remain relatively stable at

22.29% this month.

• With total returns of 46.03%, Yorkshire has

again claimed the regional top spot, with the

North West following behind at 41.73%

<{POST_SNAPBACK}>

Nothing personal here TTRTR, but these figures are total tosh. And you know they are tosh, unless they apply to a Swedish backwater, but they ain't UK figures. Someone is making them up. For those actually in the UK, it is clear to see....the motion is DOWN....not up.

VP

[frugalista]

To really get in on the BTL boom meant you had to be connected to new labour

<{POST_SNAPBACK}>

Just a wild guess but I'd hazard that most BTL speculators more likely than the average Jo to be true blue Tories. Wouldn't you agree?

frugalista

[brainclamp]

Oh...the inevitable "I" word issues forth from brainclamp as usual Shame Brainclamp, you were doing so well in restraining yourself, but inevitably, and even though it is the third item/reason on your list we all know you meant it to be the first, yes folks it's immigration again. You know the form....repeat it often enough and it's true...apparently...because BrainClamp told you.

But ironically you are wrong on any level, because I have just completed a marathon tour of the entire Southern Half of the UK (on other business) and I happened to check out a huge number of prices of rents. They ARE ALL going down. There is not a single county I saw with rising rents. Some, including Sussex and Surrey, have fallen pretty spectacularly.

Wrong again BC!

VP

<{POST_SNAPBACK}>

Never let facts get in the way of your crash.

Sounds like you should be writing to the shadow government MP David Willetts as he has obvoiusly got his facts wrong on immigration as well. Perhaps you can put him right with your superior insight.

"Britain's output per hour is one of the worst among the major Western economies.

What has gone wrong? Why has Gordon Brown not achieved the transformation of the performance of the British economy that he hoped for?

I think that at some point during his Chancellorship Gordon Brown changed strategy.

He gave up on his hopes of transforming our productivity.

Instead he decided to settle for us getting bigger, even if we weren't getting more productive, by big increases in the labour force, especially harnessing immigration from abroad.

A crucial clue is to be seen all round London. It is business which has reverted from being automated and high tech to being labour intensive.

It is the emergence of the hand car wash. They are appearing all over London, at a cost not much more than the automated car wash. A team of young men descend on your car and within a few minutes it is spotless.

When you talk to them you discover they come from Poland or Slovakia or Latvia, or beyond. They are decent and hard-working. I do not resent them taking their opportunities here.

120,000 workers came here from the accession countries in the first year.

They came to work, they drove down wages and, as the Governor of the Bank of England has pointed out, enabled the British economy to keep on growing without upward wage pressures. I sometimes think London would grind to a halt without its Polish plumbers, Slovak cleaners, and Latvian waiters.

They certainly have transformed the domestic economy of many a middle-class household, even if it is at the expense of driving down wages of British workers who compete with them." http://www.conservatives.com/tile.do?def=n...4105&speeches=1

The truth is you may never get your crash as wage inflation (and thus interest rates) can never rise in a meaningful way as nuLabour has removed Labours (as in the economic factor's) bargaining power - supply and demand.

What real wage inflation there is in goods and services is in the public sector - in both council taxes and national taxes - which doesn't show up in the inflation measure, yet have risen by 70% from 1997 and are set to rise futher with rebanding.

Edited September 1, 2005 by brainclamp