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Rents 'at Highest For Two Years' As Landlords Sell Up

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http://www.bbc.co.uk/news/business-11342198

Average rents in the UK have reached their highest level for two years as landlords sell up, a survey suggests.
Increased demand from tenants reluctant to buy in the current economic climate has also added to the upward pressure on prices, LSL Property Services said.
The group said that average rents had risen for seven consecutive months, increasing by 1.4% in August.
A separate poll for mortgage lenders suggested people still had a strong appetite to be homeowners in the UK.
Affordability
LSL said that the average monthly rent in the UK had reached £686, as a result of supply and demand pressures.
"Rents are jumping up as more and more potential home buyers opt to rent," said David Newnes, LSL's estate agency managing director.
"People are wary of a crash in house prices
and concerned over the effect of government cuts on their own ability to meet long-term financial commitments. Additionally, many can not get a mortgage at an affordable rate.
"Furthermore, the huge number of reluctant landlords we saw renting out property last year have now had the opportunity to bank their gains and sell up."
Reluctant landlords are those who decided not to sell when house prices were in a slump, but rented out their home instead after moving away.
The survey found that rents in the South East of England rose the most - by an average of 2.8% - but dropped by 1.5% in the West Midlands.
The poll for the CML found that although the long-term aspiration of home ownership had changed little, the short-term likelihood of owning a home had dipped slightly.
This reflected the fact that only 42% of those aged between 18 and 24 would prefer to live in a home they owned in two years' time.
A recent survey of 1,326 UK renters, by flat and house share website Spareroom.co.uk, found that a third of those asked and currently renting did not believe they would ever be able to afford to buy a property.

Loving the landlords selling up!

Surely rents can only reach a certain point before people simply can't/wont t pay it?

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Loving the landlords selling up!

Surely rents can only reach a certain point before people simply can't/wont t pay it?

I posted a link in the last few days - arrears are rocketing.

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This news is proudly brought to you by LSL Property Services, "one of the leading residential property services companies in the UK" (according to their website).

So, no chance of a VI there then... <_<

Incidentally, just had a gander on Rightmove for 2-bedders (flats and houses) in St Albans, it's almost shocking how (asking) prices are all over the place, from £850 to £1500 per month :blink:

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 There does seem to be some sort of short term inverse correlation between rent and sale prices (not saying this is so long terms).  A vendor who can't sell tends to want to rent out as plan b, thus increasing supply of rented properties. Of course some just do both at once anyway.

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http://www.bbc.co.uk/news/business-11342198

Average rents in the UK have reached their highest level for two years as landlords sell up, a survey suggests.
Increased demand from tenants reluctant to buy in the current economic climate has also added to the upward pressure on prices, LSL Property Services said.
The group said that average rents had risen for seven consecutive months, increasing by 1.4% in August.
A separate poll for mortgage lenders suggested people still had a strong appetite to be homeowners in the UK.
Affordability
LSL said that the average monthly rent in the UK had reached £686, as a result of supply and demand pressures.
"Rents are jumping up as more and more potential home buyers opt to rent," said David Newnes, LSL's estate agency managing director.
"People are wary of a crash in house prices
and concerned over the effect of government cuts on their own ability to meet long-term financial commitments. Additionally, many can not get a mortgage at an affordable rate.
"Furthermore, the huge number of reluctant landlords we saw renting out property last year have now had the opportunity to bank their gains and sell up."
Reluctant landlords are those who decided not to sell when house prices were in a slump, but rented out their home instead after moving away.
The survey found that rents in the South East of England rose the most - by an average of 2.8% - but dropped by 1.5% in the West Midlands.
The poll for the CML found that although the long-term aspiration of home ownership had changed little, the short-term likelihood of owning a home had dipped slightly.
This reflected the fact that only 42% of those aged between 18 and 24 would prefer to live in a home they owned in two years' time.
A recent survey of 1,326 UK renters, by flat and house share website Spareroom.co.uk, found that a third of those asked and currently renting did not believe they would ever be able to afford to buy a property.

Loving the landlords selling up!

Surely rents can only reach a certain point before people simply can't/wont t pay it?

Can't believe the beeb used the C word!

Personally I'm happy to pay a little more rent for the next couple of years if it means the supply of houses for sale is increasing.

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Rents may be reported at a high - not that I'm seeing any sign of this; I would say they've been stagnant over the past couple of years.

The obvious problem for LLs in the not so distant future is the number/availability of suitable tenants, especially in the north. Same as FTB's driving down house prices; rents will take their hit too!

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This news is proudly brought to you by LSL Property Services, "one of the leading residential property services companies in the UK" (according to their website).

So, no chance of a VI there then... <_<

Incidentally, just had a gander on Rightmove for 2-bedders (flats and houses) in St Albans, it's almost shocking how (asking) prices are all over the place, from £850 to £1500 per month :blink:

I follow LS1 and M1 Leeds and Manchester city centre.

It's not unusual to see 1 and 2 bedroom flats vary between £575 and £1000, with very little to choose between them. I don't know who pays the top end rates + high letting agent fees when they can cut their rent by 40% without breaking a sweat.

Rents may be reported at a high - not that I'm seeing any sign of this; I would say they've been stagnant over the past couple of years.

The obvious problem for LLs in the not so distant future is the number/availability of suitable tenants, especially in the north. Same as FTB's driving down house prices; rents will take their hit too!

Agreed. In Leeds and Manchester, rents have been absolutely stagnant for years.

I've lived in tons of city centre apartments and ended up paying less in late 2009 than I paid in 2004. (2004 £595 for a 1 bed, 2009 £575 for a 2 bed in the same development.)

Edited by Kyoto

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http://www.bbc.co.uk/news/business-11342198

Average rents in the UK have reached their highest level for two years as landlords sell up, a survey suggests.
Increased demand from tenants reluctant to buy in the current economic climate has also added to the upward pressure on prices, LSL Property Services said.
The group said that average rents had risen for seven consecutive months, increasing by 1.4% in August.
...VI article from the BBC ...what would you expect...?...
:rolleyes:

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This news is proudly brought to you by LSL Property Services, "one of the leading residential property services companies in the UK" (according to their website).

So, no chance of a VI there then... <_<

Incidentally, just had a gander on Rightmove for 2-bedders (flats and houses) in St Albans, it's almost shocking how (asking) prices are all over the place, from £850 to £1500 per month :blink:

indeed. this isn't the equivalent of the haliwide indices - it's a made up figure plucked out of the air by a single estate agent.

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  • 144 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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