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Topher Bear

Flood Of Renters Keeping Rents High.

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If you remember I recently told you about some friends who had an offer about 8% under asking for thier place, buyer put same offer on three places. Well they reckon they can't afford to take it, so they are going to try and rent it.

Thier place is probably nicest looking compared to other rentals and they will allow pets, asking rent is in line with others and yet they have had only one viewing. Agent told them if had 4 lined up, then strangely tried to urge them to take the first viewing even though they were smokers and they had stipulated no smokers.

It seems that down my part of the world there is am excess of rental properties, this has got to help bring things down my way. Asking sale prices still not dropping yet though.

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In my area there was been a surge in rental prices, but it seems to have topped out now. Rightmove / Property Bee has started shows drops in rental asking prices over the last few weeks. :)

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In my area there was been a surge in rental prices, but it seems to have topped out now. Rightmove / Property Bee has started shows drops in rental asking prices over the last few weeks. :)

renters have been encouraged by EAs to raise rents...the EAs would like a pay rise, and to justify the raise, they point to the flood of people who cant buy homes, they are gonna compete with each other and force rents up.

course, there is no register of actual rents, but plenty of registers of ASKING rents....Ive NEVER paid the asking rent on a move.

Others do of course....

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renters have been encouraged by EAs to raise rents...the EAs would like a pay rise, and to justify the raise, they point to the flood of people who cant buy homes, they are gonna compete with each other and force rents up.

+1

The place that I rented three years ago was at 700 for a standard 2 bed (2 bath) apartment.

Over that period I have seen EAs try to push rents through the roof. There is one currently available that would be snapped up at 700-750 and yet it is on at 1100. It's be available since October 16th so I doubt that they'll get the requested rent and will have 3 void months finding out!

tim

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Every time house prices start to dip, the EAs trade bodies try to start a panic about rising rents. I suspect that they think that if they can talk rents up there would be a level of support for high house prices.

The thing is, it is a pure pipe dream. Rents are NOT shooting up It is utter fiction.

My last 2 bed flat in the UK was 725 per month. I was paying 750 a month for a nastier place of a similar size in 2001. Some rent rise.

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Ive NEVER paid the asking rent on a move.

In my experience of renting at the bottom end of the London market, prospective tenants have almost zero negotiating power when it comes to rents. If you don't take it at asking price, they really do find somebody who will, often within hours. Many times (including this year) I have had appointments to view a property cancelled on the day because somebody already took it at asking price, even though the flat had only been advertised for a few days. That's not to say it's all bad, you can get (relative) value for money if you shop around.

Hopefully Bubb's predictions of an exodus from London will come to pass and we can all get cheap rents thanks to oversupply. It would also be nice if the Coalition would find the testicular fortitude to trim HB at some point before the 22nd century.

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In my experience of renting at the bottom end of the London market, prospective tenants have almost zero negotiating power when it comes to rents. If you don't take it at asking price, they really do find somebody who will, often within hours. Many times (including this year) I have had appointments to view a property cancelled on the day because somebody already took it at asking price, even though the flat had only been advertised for a few days. That's not to say it's all bad, you can get (relative) value for money if you shop around.

Hopefully Bubb's predictions of an exodus from London will come to pass and we can all get cheap rents thanks to oversupply. It would also be nice if the Coalition would find the testicular fortitude to trim HB at some point before the 22nd century.

I believe that in the Reading area rents have only increased in line with inflation ( if that ) over the last 10 years. I suspect London is the anomaly that the Estate Agents ( and Letting Agents ) are relying on get more money, hoping that they can boost the rents in other areas by hype.

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In my experience of renting at the bottom end of the London market, prospective tenants have almost zero negotiating power when it comes to rents. If you don't take it at asking price, they really do find somebody who will, often within hours. Many times (including this year) I have had appointments to view a property cancelled on the day because somebody already took it at asking price, even though the flat had only been advertised for a few days. That's not to say it's all bad, you can get (relative) value for money if you shop around.

I'm not disagreeing with you generally for london, but I've been renting in west london for 10years and each of the last 3 places I've had its been a game of poker with the LA and landlord - if you target things close to void and have the balls to hold out then you always get a deal. I often think if more people in london were able to play this game then rents in london would drop or at least not climb so quick - most people I know leap straight in at asking price for fear of losing out.

These days with so many agreements falling through due to failed credit checks etc makes for more properties still on market close to the start of a void period.

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These days with so many agreements falling through due to failed credit checks etc makes for more properties still on market close to the start of a void period.

Yes, the letting agents are playing a dangerous game by setting their standards so high. If their potential customers all had high secure incomes and perfect credit scores they would not be renting cheap flats in undesirable areas. Part of being a landlord is assuming a degree of counterparty risk, namely that your tenant might fail to pay the rent. Try to eliminate that risk completely and you will find yourself being one of many landlords chasing after a small number of "perfect" tenants.

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When people talk about 'in my area', could they say what area they are in? Thanks.

Sorry, is it not listed in the side profile anymore? My phone won't show those details.

I am in north wiltshire

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No rent rise here. We are paying 8% less than 3 years ago.

A couple of weeks ago I saw a lovely 1930's 3 bed semi advertised, much bigger than our current (new build) rental. Nice quiet area, huge garden, proper family home only a 5 min walk from shops, pubs restaurants. Close enough not to need a taxi, far enough away not to be disturbed. Houses either side had sold for 250k and 320k in 05 and 07. I am painting a picture for you here of a good house in a good area. You know, the ones that are never around for long.

We hadnt really been thinking about moving, but this caught my eye. When we moved to our current place we would not have considered this house, it would have been far more than we wanted to pay whilst saving. But the asking on this wasnt significantly more than we are paying and it certainly looked to be very good value.

Anyway, we went to have a look. Turned out the LA was also the landlord of this property. He had been asking £750, but told me it had been empty for 3 months. He even encouraged me to offer him £650 a month!

As much as we loved the house, the reality of moving in the run up to Xmas was the deal breaker. Agent / LL was amazed that we didnt make him the offer he suggested.

Its gone now. I hope someone hasn't blown it and paid full asking cos the bloke really looked quite desperate to me.

Summary, if the agents struggle to let out their own houses - especially well priced ones in very good areas - then I am not going to believe rents are increasing just cos the beeb did a story about 3 houses 200 miles away going to sealed bids.

Edited by Caveat Mortgagor

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This all indicates that rents are being forced up rather than being driven up. London has about 40% of rents supported by housing benefits elsewhere its lower but the delay in implementation of the revision is rates is being used to negate this. Simples. I am surprised that there hasn't been any cynical political comment on this obvious profiteering.

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When people talk about 'in my area', could they say what area they are in? Thanks.

I'm in suburban Birmingham. Of course I have no way of knowing what renters are actually paying, but, as I said, rental asking prices have indeed risen here, but now seem to have started falling again. Since the number of rentals on the market appears to have fallen and risen inversely with asking prices, I imagine actual rents have followed the same pattern. I seem to remember rents also reaching a peak after the 2007 house price peak before falling, and I expect the same to happen this time around.

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In my experience of renting at the bottom end of the London market, prospective tenants have almost zero negotiating power when it comes to rents. If you don't take it at asking price, they really do find somebody who will, often within hours. Many times (including this year) I have had appointments to view a property cancelled on the day because somebody already took it at asking price, even though the flat had only been advertised for a few days. That's not to say it's all bad, you can get (relative) value for money if you shop around.

Hopefully Bubb's predictions of an exodus from London will come to pass and we can all get cheap rents thanks to oversupply. It would also be nice if the Coalition would find the testicular fortitude to trim HB at some point before the 22nd century.

that might be the case at bottom end, I mean, there really is a bottom for landlords who borrow to let...for the others, they want cash flow.....they dont have a mortgage to pay.

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This all indicates that rents are being forced up rather than being driven up. London has about 40% of rents supported by housing benefits elsewhere its lower but the delay in implementation of the revision is rates is being used to negate this. Simples. I am surprised that there hasn't been any cynical political comment on this obvious profiteering.

Young working people or people with young families to support can no longer afford to live and work in London, so they don't...or they move away...can't say I blame them. ;)

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Young working people or people with young families to support can no longer afford to live and work in London, so they don't...or they move away...can't say I blame them. ;)

Sad, but true. The only way to stay is to "fit" in with the LHA system. It's like a modern day version of the highland clearance except going on under the noses of government, who just have turned a blind eye to it. :(

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I often post the RPI graph of actual rents paid measured by the ONS but nobody seems to notice. It's the largest

independent source I know of.

Rents overall always go up every year and are far more stable that the figures for actual mortgage interest paid

which bounce all over the place. Rents have been coming down in terms of increases and are at a trough with the

decline starting years ago way.

rentrpinsa.gif

Edited by northwestsmith2

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Sad, but true. The only way to stay is to "fit" in with the LHA system. It's like a modern day version of the highland clearance except going on under the noses of government, who just have turned a blind eye to it. :(

What I find so unfair is, it is the working tax payer that is paying for the ones that do not work because it is not in their best interest to do so...we are subsidising the greedy landlords and wealthy employers that should be paying people they employ a decent livable wage that pays the rent....if they had to do that you would soon find rents dropping fairly sharpish.

Do you sometimes get the feeling you are being used? ;)

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What I find so unfair is, it is the working tax payer that is paying for the ones that do not work because it is not in their best interest to do so...we are subsidising the greedy landlords and wealthy employers that should be paying people they employ a decent livable wage that pays the rent....if they had to do that you would soon find rents dropping fairly sharpish.

Do you sometimes get the feeling you are being used? ;)

If it weren't true you'd expect to see this in some sort of Orwellian novel. :blink:

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I often post the RPI graph of actual rents paid measured by the ONS but nobody seems to notice. It's the largest

independent source I know of.

Rents overall always go up every year and are far more stable that the figures for actual mortgage interest paid

which bounce all over the place. Rents have been coming down in terms of increases and are at a trough with the

decline starting years ago way.

rentrpinsa.gif

thats great..Ill try and remember it.

Just wondering where the ONS get their figures from.

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What I find so unfair is, it is the working tax payer that is paying for the ones that do not work because it is not in their best interest to do so...we are subsidising the greedy landlords and wealthy employers that should be paying people they employ a decent livable wage that pays the rent....if they had to do that you would soon find rents dropping fairly sharpish.

Do you sometimes get the feeling you are being used? ;)

These days, it just feels like almighty theft from the majority by the minority at the very top.

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What I find so unfair is, it is the working tax payer that is paying for the ones that do not work because it is not in their best interest to do so...we are subsidising the greedy landlords and wealthy employers that should be paying people they employ a decent livable wage that pays the rent....if they had to do that you would soon find rents dropping fairly sharpish.

Do you sometimes get the feeling you are being used? ;)

It's a right scam. And housing benefit bills are going to increase and yield more per property over the next few years. It sets a minimum house price. The worst thing about it, is the tenants on HB like myself have little incentive to ask for a rent reduction. Although I personally do and have had 4 this year, with one increase. (3 of them and the increase were but a few pennies and the letters notifying me cost more in postage! - Not to mention the wages of the person sending them!)

Seeing as this thread is about rents, what is the long term average of house price- rent ratio?

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  • 312 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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