Realistbear Posted February 17, 2011 Report Share Posted February 17, 2011 (edited) http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8329584/London-rents-to-rise-by-8pc-in-2011-says-property-consultant-Savills.html London rents to rise by 8pc in 2011, says property consultant Savills Rents in prime London properties soared by 11.5pc in 2010 and will rise by another 8pc this year as a shortage of properties drives the market forward. By Graham Ruddick 6:30AM GMT 17 Feb 2011 According to research by Savills, rents grew by as much as 17.6pc in prime North London areas such as Hampstead and Islington last year, compared to a rise of 4.8pc in the mainstream UK market. "Stock shortages persist which is good news for landlords," said Jacqui Daly, Savills residential research director. “The dynamic of constrained mortgage markets, of buyers adopting a 'wait and see’ approach, a lack of new build supply, a return of corporate tenants, improving employment prospects and the reduction in accidental landlords, means that strong rental growth will continue to characterise the market in 2011.” Savills predicts that rents will increase by an average of 8pc across prime London and by 7pc in the prime central zones (such as Chelsea) this year. This compares with a 2011 forecast for growth in London sales prices of just 1pc. The South West could see the strongest rental growth this year, as a robust sales market in the region in 2010 has reduced the supply of available rental properties. Rents are extremely high east of Brighton: £1k for a hole. Very few on the market so LL can get asking prices for gaffs with rotting windows and carpets stained with excreta and beer. Edited February 17, 2011 by Realistbear Quote Link to post Share on other sites
MrFlibble Posted February 17, 2011 Report Share Posted February 17, 2011 Rents up, food up, fuel up, salaries stagnant (if you have a job). Anyone see a problem here? Still not to worry, let the looting continue... Quote Link to post Share on other sites
muggle Posted February 17, 2011 Report Share Posted February 17, 2011 (edited) “The dynamic of constrained mortgage markets, of buyers adopting a 'wait and see’ approach, a lack of new build supply, a return of corporate tenants, improving employment prospects and the reduction in accidental landlords, means that strong rental growth will continue to characterise the market in 2011.” I smell VI BS Edited February 17, 2011 by muggle Quote Link to post Share on other sites
'Bart' Posted February 17, 2011 Report Share Posted February 17, 2011 Good New For Btl As Rents Soar 17.6% In London Ahh, deflation at work. Quote Link to post Share on other sites
Nationalist Posted February 17, 2011 Report Share Posted February 17, 2011 Rents up, food up, fuel up, salaries stagnant (if you have a job). Anyone see a problem here? Still not to worry, let the looting continue... Indeed, and rent, unlike house prices, is in the CPI basket so wil affect the number that Merv is ignoring. Quote Link to post Share on other sites
Fairies Wear Boots Posted February 17, 2011 Report Share Posted February 17, 2011 Good New For Btl As Rents Soar 17.6% In London Ahh, deflation at work. Yeah, I see deflation all around. Quote Link to post Share on other sites
Bruce Banner Posted February 17, 2011 Report Share Posted February 17, 2011 Good New For Btl As Rents Soar 17.6% In London Ahh, deflation at work. We are in a deflationary environment but the powers that be continue to fight it. Quote Link to post Share on other sites
blackgoose Posted February 17, 2011 Report Share Posted February 17, 2011 A few months ago, I was thinking about moving to London, but the house prices and rent have changed my mind for me. For the same price, elsewhere in the country you can live in a detached house with garden, and in London for that amount you will be lucky to get a terraced house next to some housing benefit scroungers with kids that keep you awake all night. Quote Link to post Share on other sites
kenzdawg Posted February 17, 2011 Report Share Posted February 17, 2011 Yep. Rents and mortgages are substitutions goods and therefore countercyclical. In a HPC rents ought to be going up. In practice, of course, it's more complicated than that. Quote Link to post Share on other sites
FreeTrader Posted February 17, 2011 Report Share Posted February 17, 2011 Indeed, and rent, unlike house prices, is in the CPI basket so wil affect the number that Merv is ignoring. Well, according to Savill's rents in the UK rose by 4.8% in 2010. According to the ONS CPI measurement, they rose 1.6%. Which VI to believe? Quote Link to post Share on other sites
Home_To_Roost Posted February 17, 2011 Report Share Posted February 17, 2011 I'm so glad that Mervyn is at the helm ..... his "due diligence" will prevent runway inflation of rental prices Quote Link to post Share on other sites
TheCountOfNowhere Posted February 17, 2011 Report Share Posted February 17, 2011 Terrible news for society Quote Link to post Share on other sites
Bruce Banner Posted February 17, 2011 Report Share Posted February 17, 2011 Well, according to Savill's rents in the UK rose by 4.8% in 2010. According to the ONS CPI measurement, they rose 1.6%. Which VI to believe? I've just renewed my rental agreement for another year, no increase. Quote Link to post Share on other sites
Lagarde's Drift Posted February 17, 2011 Report Share Posted February 17, 2011 LOL my Zone 1 Bristol family house costs substantially less to rent than it would be to mortgage-buy the equivalent, although I could just dump cash for it. Is Zone 5 even really in London? How long for the Tube trip to, say, Westminster? Not having a go, nor baiting. Just that what you are saying is that if you are rich and bought at the right time then you are OK, which is not saying very much at all. Quote Link to post Share on other sites
EmmaRoid #FBPE#JC4PM#GTTO Posted February 17, 2011 Report Share Posted February 17, 2011 When did you buy? How much do interest rates have to rise to make you nervous? I hope the answer to those questions is "over 10 years ago" and "a lot" (if either of those answers is correct, then the other probably is too). However, if your answer to question 1 is "under 10 years ago", then the answer to the second question is probably "not much" Bottom line, your experience is probably not related to the problems we now face... Please don't encourage him. He lives on mung beans, nettle tea and whatever else he can forage. He bought twice, at both peaks and property is the best thing since sliced bread. Nothing worse than this brand of smugness. Quote Link to post Share on other sites
Kyoto Posted February 17, 2011 Report Share Posted February 17, 2011 (edited) London rents are shocking. I don't understand who are are paying them.... http://www.gumtree.com/cgi-bin/list_postings.pl?search_location=London&num_bedrooms_1=Y&num_bedrooms_2=Y&min_price=&max_price=&ubercat=2511 Even on £50k+, you're going to miss £1500+ per month in post tax income. Paying that for somewhere that still aint that salubrious would break my heart. I agree with the above poster that buying actually starts to add up if you aren't that fussy. We are currently negotiating and 1 or 2 bedroom flats commutable to London in the £140k range. With the required 20% deposit, that puts us down at around £500 per month mortgage on the base rate tracker we have a work benefit. London is an absolute cess pit of a place, but I've been able to earn much more than I could outside and have socked it away so I can make my escape soon mortgage free similar to Orbital. Edited February 17, 2011 by Kyoto Quote Link to post Share on other sites
Riedquat Posted February 17, 2011 Report Share Posted February 17, 2011 With the required 20% deposit, that puts us down at around £500 per month mortgage on the base rate tracker we have a work benefit. That would scare the living daylights out of me, and I wouldn't want to be in that situation (although several people have tried to persuade me - "See, you'd only be paying that much"). Where will I be in a few years' time? Paying a hell of a lot more than £500 per month with that mortgage. When I can afford to buy the place I want with a 10% interest rate (even if currently it's well below that) will I consider buying. I'd rather be spending money on rent than permamently crapping myself at the thought of rates going up, which they inevitably will do. Low rates should be viewed as a bonus, not a boon to affordability. Quote Link to post Share on other sites
redbear Posted February 17, 2011 Report Share Posted February 17, 2011 That would scare the living daylights out of me, and I wouldn't want to be in that situation (although several people have tried to persuade me - "See, you'd only be paying that much"). Where will I be in a few years' time? Paying a hell of a lot more than £500 per month with that mortgage. When I can afford to buy the place I want with a 10% interest rate (even if currently it's well below that) will I consider buying. I'd rather be spending money on rent than permamently crapping myself at the thought of rates going up, which they inevitably will do. Low rates should be viewed as a bonus, not a boon to affordability. It's a lose-lose situation. Rent and you're paying through the nose, buy a place and you're supporting the overpriced assets. If only there was a way to short house prices.... Quote Link to post Share on other sites
Kyoto Posted February 17, 2011 Report Share Posted February 17, 2011 That would scare the living daylights out of me, and I wouldn't want to be in that situation (although several people have tried to persuade me - "See, you'd only be paying that much"). Where will I be in a few years' time? Paying a hell of a lot more than £500 per month with that mortgage. When I can afford to buy the place I want with a 10% interest rate (even if currently it's well below that) will I consider buying. I'd rather be spending money on rent than permamently crapping myself at the thought of rates going up, which they inevitably will do. Low rates should be viewed as a bonus, not a boon to affordability. The point is thought that this is substantially less than the market rent in the London bubble. I'm looking at paying £1000+ for somewhere habitable, or having the option of paying around £500 mortgage. For me, I think this is coming out of low interest rates + price falls in first time buyer properties + a very real rise in rents. There's a gap opening up there where it makes sense to buy in London. (Our figures are scewed by having the base rate + 0% tracker but I think same applies to anybody else to a lesser degree.) Quote Link to post Share on other sites
Tired of Waiting Posted February 17, 2011 Report Share Posted February 17, 2011 http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8329584/London-rents-to-rise-by-8pc-in-2011-says-property-consultant-Savills.html London rents to rise by 8pc in 2011, says property consultant Savills This looks like VI propaganda. Sorry RB, but you have helped them with a misleading thread tittle on the front page. I know you didn't mean to, but please be more suspicious of these VI. Quote Link to post Share on other sites
Kyoto Posted February 17, 2011 Report Share Posted February 17, 2011 This looks like VI propaganda. Sorry RB, but you have helped them with a misleading thread tittle on the front page. I know you didn't mean to, but please be more suspicious of these VI. Guys, every survey going is showing that London rents are rising and it is there for all to see. Spend a few minutes looking for something you would feel comfortable living in on Rightmove or Gumtree. You will see that the rents are absurd and getting more so by the month. There aren't many Property Bee reductions let me tell you. I am looking at both markets concurrently. Not a hope in hell of getting a discount on advertised rents, but people are lopping £10k off sales prices without a moments hesitation. Quote Link to post Share on other sites
Cozza Posted February 17, 2011 Report Share Posted February 17, 2011 Guys, every survey going is showing that London rents are rising and it is there for all to see. Spend a few minutes looking for something you would feel comfortable living in on Rightmove or Gumtree. You will see that the rents are absurd and getting more so by the month. There aren't many Property Bee reductions let me tell you. I am looking at both markets concurrently. Not a hope in hell of getting a discount on advertised rents, but people are lopping £10k off sales prices without a moments hesitation. Surely most of these rental increases are only short term, with landlords scrambling to cash in until April when the capped housing benefit rent comes into force? Quote Link to post Share on other sites
yekim1967 Posted February 17, 2011 Report Share Posted February 17, 2011 The point is thought that this is substantially less than the market rent in the London bubble. I'm looking at paying £1000+ for somewhere habitable, or having the option of paying around £500 mortgage. For me, I think this is coming out of low interest rates + price falls in first time buyer properties + a very real rise in rents. There's a gap opening up there where it makes sense to buy in London. (Our figures are scewed by having the base rate + 0% tracker but I think same applies to anybody else to a lesser degree.) For most parts of London your looking at 4-6% rental yield, which is about the same as mortgage interest rates. If you plan to stay in one place long term, ok, but still no rush to buy. By renting you can save a fortune, because no, stamp duty, mortgage fees, legals fees, survey fees, ground rent/service charge, and maintenance alone could crush you if something bad happens. I put all of my extra savings over buying a home into my pension, as its much much more tax effective. I just do see the economics there to buy a place, unless your looking very very long term, but hopefully I am out of London in 5 years! Quote Link to post Share on other sites
Tired of Waiting Posted February 17, 2011 Report Share Posted February 17, 2011 Guys, every survey going is showing that London rents are rising and it is there for all to see. Spend a few minutes looking for something you would feel comfortable living in on Rightmove or Gumtree. You will see that the rents are absurd and getting more so by the month. There aren't many Property Bee reductions let me tell you. I am looking at both markets concurrently. Not a hope in hell of getting a discount on advertised rents, but people are lopping £10k off sales prices without a moments hesitation. They may be, but not by an average of 17.6%. And that was the impression given by the thread's title: "Rents Soar 17.6% In London" Quote Link to post Share on other sites
Si1 Posted February 17, 2011 Report Share Posted February 17, 2011 When did you buy? How much do interest rates have to rise to make you nervous? I hope the answer to those questions is "over 10 years ago" and "a lot" (if either of those answers is correct, then the other probably is too). However, if your answer to question 1 is "under 10 years ago", then the answer to the second question is probably "not much" Bottom line, your experience is probably not related to the problems we now face... Orbital's some kind of narcissist and comes on here to get a thrill. Quote Link to post Share on other sites
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