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Pauly_Boy

The Sudden Interest In Rental Proces

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Has anyone else noticed that now the news for house prices is less than rosy, the VIs are concentrating on reporting on increasing rents. For instance the BBC has an article Reporting on rental increases, and whilst it's lacking the usual 'high prices are good' spin, it's still a long way off what a similar article about rising gas prices would be

Home rental costs 'continue to rise'

Demand for rooms to rent is growing, according to the industry

Continue reading the main story

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Frustrated buyers are continuing to push up the price of renting a property in the UK, according to a survey.

The average cost rose for the ninth consecutive month to £691 a month in October, according to LSL Property Services.

The price is rising as potential first-time buyers struggle to get a mortgage and so continue to rent.

A separate survey from Spareroom.co.uk suggested that seven people were chasing every room for rent.

The house sharing website said this was the highest level of demand since it launched six years ago.

Lettings

The survey by LSL found that the average rent was 0.4% higher in October than the previous month, and 4.5% higher than in October last year.

High demand was also being driven by potential buyers waiting as they expected house prices to continue to fall.

Landlords were also unable to extend the supply of rental properties because the mortgage drought was making it difficult for them to extend their property portfolios.

"Rents have been creeping upwards, month in, month out for the last year, and now stand just a few pounds shy of £700 per month," said LSL's estate agency managing director David Newnes.

"The recent increases are likely to steady slightly in run up to Christmas - traditionally a slower time for the market. But a strong underlying growth will remain, as the key market dynamics are geared towards further rises."

Rent rises were strongest in the South East of England, but the average rent fell slightly in Yorkshire and the Humber in October.

Ps, posted on my iPhone incase the formatting is screwedup

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Increasing rents eh? Oh I do tire of the VI's and their spin. They've spent 3 years steeling the sellers that prices wont fall in order ot prop the market up, and now they want to make it harder for me to get a decent rental deal. They are doomed to fail though.

This afternoon I am going to look at a nice 1930s semi. The properties either side sold in 2003 and 2005 for £250k and £320k respectively. Nice solid area, the kind of area the VI's will tell you will get snapped up straight away. Nr a golf course and a park, and my favourite local pub a 5 min walk away!

Its been empty and earning voids for the landlord for well over a month. Two years ago I wouldnt have contemplated looking at this house as it would have been at £200-300 per month more than they are asking now.

Its exactly the kind of house that has been put out to rent rather than sell over the last few years. This type of house used to be very rare in the rental market and would command a much higher rent. More and more of these cropping up and the prices are coming down.

FWIW, they are asking a rent that I reckon will give a yield of just slightly less than 3%. And I wont be offering the asking!

Edited by Caveat Mortgagor

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It's a not very subtle attempt to tempt people holding onto their cash to get into the BTL market.

It's interesting watching people get legally mugged.

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Home rental costs 'continue to rise'

Has anyone else noticed that now the news for house prices is less than rosy, the VIs are concentrating on reporting on increasing rents. For instance the BBC has an article Reporting on rental increases, and whilst it's lacking the usual 'high prices are good' spin, it's still a long way off what a similar article about rising gas prices would be

Yes, I was thinking the very same thing myself this morning.

Now compare this with the sob story of the "home owner" who gave up her job to live on benefits (discussed here) and you get a good idea of the BBC's impartiality.

Pathetic.

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It appears to be working to an extent though. The word in the FaFa! office is that rental is good to get into at the moment because "people cannot get mortgages" which will apparently lead to a rise in rental demand. This is despite tales of people knowing people who have got burned in city centre BTL deals. I have not asked whether the landlords themselves would be able to get finance...

More to the point, my rent has never been increased in the four years I have been renting since I came back to the UK and I have never heard of anyone having the rent increased.

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'Average' rents rising ? Sure I have heard something similar before.

Wouldn't be exactly the same thing as we have been seeing with house sales - would it ?

Far far more larger family homes being rented today than there were even a year ago. I am sure skewing of stats takes place in the rental market as well as the sales market.

Don't hear anything about anyone I know being squeezed for rent. Far from it. Still loads of choice.

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Increasing rents eh? Oh I do tire of the VI's and their spin. They've spent 3 years steeling the sellers that prices wont fall in order ot prop the market up, and now they want to make it harder for me to get a decent rental deal. They are doomed to fail though.

This afternoon I am going to look at a nice 1930s semi. The properties either side sold in 2003 and 2005 for £250k and £320k respectively. Nice solid area, the kind of area the VI's will tell you will get snapped up straight away. Nr a golf course and a park, and my favourite local pub a 5 min walk away!

Its been empty and earning voids for the landlord for well over a month. Two years ago I wouldnt have contemplated looking at this house as it would have been at £200-300 per month more than they are asking now.

Its exactly the kind of house that has been put out to rent rather than sell over the last few years. This type of house used to be very rare in the rental market and would command a much higher rent. More and more of these cropping up and the prices are coming down.

FWIW, they are asking a rent that I reckon will give a yield of just slightly less than 3%. And I wont be offering the asking!

I would agree that rents can be softer than claimed. The unintended Landlord is making a comeback. If you delve more deeply, the rents on the slightly larger properties have actually fallen in the last year by around 4-5%. I was looking a flat for my eldest yesterday and found that the market is softer than claimed by agents, but it is steady for any decent property in the right place. You can definitely make offers on the rent.

I do think rents will tail off soon as people have no more money and the HB cuts have yet to kick in.

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Home rental costs 'continue to rise'

Yes, I was thinking the very same thing myself this morning.

Now compare this with the sob story of the "home owner" who gave up her job to live on benefits (discussed here) and you get a good idea of the BBC's impartiality.

Pathetic.

Anyone else see what DC said to Margaret Hodge re HB reform?

Quoted in today's Times:

<'Margaret Hodge, the former Labour minister, said such an influx (of priced-out HB renters) into her Barking constituency could be a boon to extremists. 'Is social unrest a price worth paying, and the impact that can have with the extreme right?'

Mr Cameron said he would walk down any street in Barking with Ms Hodge and ask people earning £20-30,000 if they were happy paying the £40-50,000 rents of the unemployed. 'I think that it is more likely, frankly, to lead to social unrest when people find out how much money they're paying in taxes for people to live in houses they couldn't dream of living in themselves.' >

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I have to say though that it's a real shame that rents are rising. It means I've got less of that lovely money stuff to go and spend in the UK economy. Oh well. I'm sure the landlord will spend it and not use it on his foreign holiday next year.

Don't be stupid. It's only any good for the economy if you're giving it all to the bank to pay the overpriced mortgage on an overprice house.

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It appears to be working to an extent though. The word in the FaFa! office is that rental is good to get into at the moment because "people cannot get mortgages" which will apparently lead to a rise in rental demand. This is despite tales of people knowing people who have got burned in city centre BTL deals. I have not asked whether the landlords themselves would be able to get finance...

More to the point, my rent has never been increased in the four years I have been renting since I came back to the UK and I have never heard of anyone having the rent increased.

My rent has never increased in the twelve years I've been renting, though I am paying more because I moved into a bigger place in a more central location. Like you, I don't know anyone else who has had their rent increased.

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  • 261 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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