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Renters Gazumping!

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17 June 2011 Last updated at 00:00

Gazumping 'pushing up rent costs for tenants'

Gazumping is pushing up rents in England and Wales as the average cost to tenants reached £696 in May, according to a survey.

Rising tenant demand has led to some offering above the asking price to rent a home, LSL Property Services said.

The average cost of renting a home has risen for four consecutive months, its analysis suggested.

But more than one in 10 tenants in the UK missed or were late paying their rent in May, it also found.

Regional breakdown

The average rent in England and Wales was £4 higher in May than in April, said LSL, which owns a lettings agents network including chains such as Your Move and Reeds Rains.

The typical rent was 4.4% higher than a year earlier, but there were significant regional variations, it said.

In London, annual rental costs have risen by 7.8% in the last year. In the North East of England, the cost was up 6.4% and there was a 6.2% rise in the East Midlands.

Yet, average rents have fallen by 1.2% in the East of England, and were down 0.4% in the South West of England.

"The rocketing cost of living, combined with ongoing difficulty first-time buyers are experiencing in obtaining a mortgage, is increasing the number reliant on rental accommodation," said David Newnes, of LSL.

"With the fierce competition for homes, rental gazumping is becoming more commonplace and properties are being let beyond asking price, putting further upwards pressure on the market. For tenants, unable to buy, renting is becoming less affordable as demand booms. Rents are increasing at twice the rate of wages."

LSL calculated that 11.5% of UK rental payments were unpaid or late in May.

<end>

My alternative headline:

Regurgitated Press Release fromLSL Property Services makes mainstream news due to lazy journalist

Edited by up2late

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Its rubbish!

EA's and landlords seem just as open to offers under asking as they always have. I dont think I've ever rented a place without knocking 50 quid of the monthly rent. Last time was 3 months ago in London on property just on the market.

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http://www.bbc.co.uk/news/business-13799477

Gazumping is pushing up rents in England and Wales as the average cost to tenants reached £696 in May, according to a survey.

Rising tenant demand has led to some offering above the asking price to rent a home, LSL Property Services said.

The average cost of renting a home has risen for four consecutive months, its analysis suggested.

But more than one in 10 tenants in the UK missed or were late paying their rent in May, it also found.

Regional breakdown

The average rent in England and Wales was £4 higher in May than in April, said LSL, which owns a lettings agents network including chains such as Your Move and Reeds Rains.

The typical rent was 4.4% higher than a year earlier, but there were significant regional variations, it said.

In London, annual rental costs have risen by 7.8% in the last year. In the North East of England, the cost was up 6.4% and there was a 6.2% rise in the East Midlands.

Yet, average rents have fallen by 1.2% in the East of England, and were down 0.4% in the South West of England.

"The rocketing cost of living, combined with ongoing difficulty first-time buyers are experiencing in obtaining a mortgage, is increasing the number reliant on rental accommodation," said David Newnes, of LSL.

"With the fierce competition for homes, rental gazumping is becoming more commonplace and properties are being let beyond asking price, putting further upwards pressure on the market. For tenants, unable to buy, renting is becoming less affordable as demand booms. Rents are increasing at twice the rate of wages."

LSL calculated that 11.5% of UK rental payments were unpaid or late in May.

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LSL calculated that 11.5% of UK rental payments were unpaid or late in May.[/i]

"Rents are increasing at twice the rate of wages"

And retail sales are going down. I'm finding it difficult to connect the dots.

Still, it is a good news story....

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Can anyone find the actual report? I had a look on LSL's site without success.

BBC News said it was based on the LSL Buy to Let index.

Message 1; Buy a BTL now and increase your rents forever :rolleyes:.

Message 2; If you can get a mortgage, buy now or pay increasing rents forever :rolleyes:.

Senior BBC employees must, like a large number of the middle classes, be heavily into BTL and/or MEW on their main residences to be pushing this VI crap as hard as they do. They are seriously worried ;).

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Begrudgingly, they admit it's regional.

"...average rents have fallen by 1.2% in the East of England, and were down 0.4% in the South West of England"

No mention in thge article of my area, West Mids, but I'd say it's flat. Boom boom.

There are oodles of empty places for rent round here. I can't understand a LL paying for voids, just drop the price. I've seen places empty for 6 months +.

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Begrudgingly, they admit it's regional.

"...average rents have fallen by 1.2% in the East of England, and were down 0.4% in the South West of England"

No mention in thge article of my area, West Mids, but I'd say it's flat. Boom boom.

There are oodles of empty places for rent round here. I can't understand a LL paying for voids, just drop the price. I've seen places empty for 6 months +.

It's as I feared. The article states rents are up by 7.8% in London. My guess is this means there won't be a HPC in London/the south-east. Higher rents mean property values will hold up, and even increase in some areas. Even if uk banks cut back on lending and stop the liar loans, there will be plenty of foreign (including recent migrants with family abroad) investors who will see a good opportunity.

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It's as I feared. The article states rents are up by 7.8% in London. My guess is this means there won't be a HPC in London/the south-east. Higher rents mean property values will hold up, and even increase in some areas. Even if uk banks cut back on lending and stop the liar loans, there will be plenty of foreign (including recent migrants with family abroad) investors who will see a good opportunity.

Fear not, this is just VI claptrap from estate agent chain LSL who also produce the 'Acadametrics' house price index :lol:.

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I've been looking at rentals in my area and end of the market (zone 3 London, lower end) lately. Rents are the same as they were when I last moved a year ago, and really seem to have gone nowhere since I moved to London six years ago. If rents are rising it may be further up the market, or possibly more expensive places are coming up to rent and the people who compile these figures are not adjusting their basket properly.

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Fear not, this is just VI claptrap from estate agent chain LSL who also produce the 'Acadametrics' house price index :lol:.

I realise it's from a VI; also that it's propaganda.

However here in London I think they're winning.

:(

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seems only natural the bbc have moved on to ramping renting now the appetite for buying has diminished. Sheeple seem to love this bullcrap :rolleyes:

+1

Probably a fair number of luvies in the Beeb who can't sell and are being forced to let out their properties. Nothing like getting your employer to do the national advertising for free for you. I mean, EAs have never been let down by the Beeb (and other TV companies for that matter.)

I await Krustie/Phil/Beenie/etc./etc./etc. new program "How to Profit from BTL" sometime in the year.

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I've been looking at rentals in my area and end of the market (zone 3 London, lower end) lately. Rents are the same as they were when I last moved a year ago, and really seem to have gone nowhere since I moved to London six years ago. If rents are rising it may be further up the market, or possibly more expensive places are coming up to rent and the people who compile these figures are not adjusting their basket properly.

I live in Chester (lovely area and a superb apartment with great views). Huge place but one bedroom. Rent last period 650 quid, knocked them down to 600 for the next six. Rising my ar$ehole.

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I live in Chester (lovely area and a superb apartment with great views). Huge place but one bedroom. Rent last period 650 quid, knocked them down to 600 for the next six. Rising my ar$ehole.

Why would a LL reduce the rent for a sitting tenant???

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Why would a LL reduce the rent for a sitting tenant???

.....

£50 x 12 = £600 loss of income, (half that for 6 months), which is less than 1 month's void whilst seeking a new tenant. It's just a bit of chicken to see who blinks first. An anecdote to counter the BBC propaganda that rental demand is soaring, as if it was, the landlord would just kick the sitting tenant out and raise the asking rent for the next tenant who would scrabble to get in ASAP.

Edit: p.s. perhaps the LL is smart enough to realise that rents are not dependent on credit (well maybe so if you count CCs :blink: ), unlike mortgages.

Edited by Cash with Nowhere to Go

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Wasn't long ago so many here were saying that rents were not rising, now this seems to be the case in some areas.

That said, I do some of the time see landlords dropping before letting when I track using propertybee.

Worrying trend nonetheless

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We left our previous rental after half-freezing during the cold snap at the beginning of 2010. Found a new place with the same EA and told them the old place had no insulation, single glazing etc so was too cold. Turns out she's friends with the old LL and passed on that information...

We bumped into our old neighbours who said that after we left, the LL spent months getting the windows done and insulating the loft etc then put it back on the market at 15% more than before and it wasn't a bargain then. Guess what? No-one took it until a further nine months later when they dropped the rent back down to what we paid. Serves them right for being greedy IMO.

Edited by rantnrave

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I'm not in London,or the East Midlands; I visit the NE a lot.

The article just doesn;t tie up with what I know about in the NE and the SW.

Asking rents are back to where they were in the late 90s - in nominal term.

On my rouhg+ready calculator - about 250/bedroom, which was my old shared house value model when I was living in the SE in the mid 90s.

I few places I know + visit quite well are beyond saturated with empty rentals - not just the dumb developer stuff but the stuff thts been rentals for years.

Rental's asking may be up but the gettings must be low. Voids are horrendous.

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Despite the rises, tenant arrears fell in May 2011, with 11.5% of all rent in England and Wales unpaid or late by the end of the month, compared to 11.8% by the end of April. But this figure is well above the 10.6% average of 2010, and takes the total unpaid rent to £277m.

Newnes warned that with tenant finances coming under increasing strain from rampant inflation and soaring rents, as well as public sector squeezes, it is "critical that landlords notice and react quickly to any potential payment problems to prevent tenant arrears spiralling out of control".

They try to portray BTL as easy money but that's a lot of unpaid rent even before you start thinking about tenants from hell and voids.

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I realise it's from a VI; also that it's propaganda.

However here in London I think they're winning.

:(

...so what you are saying is the extra you can earn by living in London goes towards paying extra rent added to that extra stress...seems a pointless exercise imo..... :blink:

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Newnes warned that with tenant finances coming under increasing strain from rampant inflation and soaring rents, as well as public sector squeezes, it is "critical that landlords notice and react quickly to any potential payment problems to prevent tenant arrears spiralling out of control".

I note that Newnes omitted to issue a warning to tenants about landlords finances coming under increasing strain from house price deflation and rising interest rates.

I would advise that it is critical for tenants to run a credit check on their landlord if they have any doubts as to his solvency.

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I note that Newnes omitted to issue a warning to tenants about landlords finances coming under increasing strain from house price deflation and rising interest rates.

I would advise that it is critical for tenants to run a credit check on their landlord if they have any doubts as to his solvency.

+ more than 1......nothing worse than an insolvent landlord. ;)

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  • 284 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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