Rents Rise As Homes Remain In Short Supply

[interestrateripoff]

http://www.telegraph.co.uk/finance/personalfinance/consumertips/8634299/Rents-rise-as-homes-remain-in-short-supply.html

The Association of Residential Lettings Agents (Arla) found 56pc of its members reported that rents had risen over the past six months, compared with 53pc three months ago.

Some 42pc reported that tenants were struggling to pay rents, in line with the previous quarter, with about the same proportion haggling with landlords.

The problem is being caused by a shortage of homes in Britain, which is exacerbated as potential new buyers who struggle to obtain mortgages are being forced into rented accommodation.

There's a homes shortage, prices can only go up.

[pet]

There's a homes shortage, but not property shortage.

[leicestersq]

http://www.telegraph.co.uk/finance/personalfinance/consumertips/8634299/Rents-rise-as-homes-remain-in-short-supply.html

There's a homes shortage, prices can only go up.

Yes, given that the amount of interest you can pay on a property as an investment is proportional to the rent, and the price at which you can make a profit borrowing to obtain a house to rent out is a function of the rent and the rate of interest, then if rents go up, so do house prices.

[Bruce Banner]

Yes, given that the amount of interest you can pay on a property as an investment is proportional to the rent, and the price at which you can make a profit borrowing to obtain a house to rent out is a function of the rent and the rate of interest, then if rents go up, so do house prices.

Well whoopityshit, so house prices go up because of deluded sellers and deluded landlords. I'd better buy now before I miss the boat....................perhaps not .

[Lepista]

Cost of {x} is rising, says producers of {x}, who would directly benefit at no additional cost to themselves because of increase in {x}.

Seriously, the only way the costs of renting can rise, is if landlords are asking (and getting) a rise.

I've yet to see ANY independent cost index of renting. Until I do, I can only conclude the VI press releases are utter ********.

[Brave New World]

With her indoors being 3 months up the duff – we decided to rent somewhere a bit bigger.

Looked at two utterly overpriced places (1150 a month, both now reduced to 975). Looked at a place last night had only come on that morning after the tenant had moved out at the weekend (thanks property Bee!) and did a tandum viewing, even with it needing a good clean we both wanted it. Made sure we were a bit late so we were last there and had an earwig at the other couples questions when we were upstairs. Luckily Mrs BNW is an organised type and had all the application forms already filled in and had our cheque book so took it then and there.

Paying £825 for a really, really nice part of town (quite a few £750k houses on the same road), 3 reception rooms front and back garden and decent state of decour with decoration before we move in. Would happily have paid £960 + for it. So bargins still out there but fly out super quick.

Anything remotely nice goes within a couple of days round Harrogate, not even making it onto the rightmove in most cases.

To me this is not the BTL buying up more property but a symptom of people ‘safe havening’ instead of buying.

[leicestersq]

Cost of {x} is rising, says producers of {x}, who would directly benefit at no additional cost to themselves because of increase in {x}.

Seriously, the only way the costs of renting can rise, is if landlords are asking (and getting) a rise.

I've yet to see ANY independent cost index of renting. Until I do, I can only conclude the VI press releases are utter ********.

Lepista,

yes, I guess it is difficult to know exactly what is happening with rents generally. If they are rising though, then that is bound to have an upwards push on house prices.

[Lagarde's Drift]

Paying £825 for a really, really nice part of town (quite a few £750k houses on the same road), 3 reception rooms front and back garden and decent state of decour with decoration before we move in. Would happily have paid £960 + for it. So bargins still out there but fly out super quick.

Says it all, really. What do you think the yield is for your landlord?

[Si1]

The problem is being caused by a shortage of homes in Britain, which is exacerbated as potential new buyers who struggle to obtain mortgages are being forced into rented accommodation.

thsi is meaningless, the two sections of the sentence are not connected!

[tomandlu]

Says it all, really. What do you think the yield is for your landlord?

Indeed - I looked at the numbers originally and thought, 'hmm, nice yield.' Then I realised I was a decimal point out...

[Lepista]

Lepista,

yes, I guess it is difficult to know exactly what is happening with rents generally. If they are rising though, then that is bound to have an upwards push on house prices.

Er, no.

[Guest_flaps_*]

thsi is meaningless, the two sections of the sentence are not connected!

Plus they must already be living somewhere, so are they vacating another rental, or been staying at their folks.

[tomandlu]

Lepista,

yes, I guess it is difficult to know exactly what is happening with rents generally. If they are rising though, then that is bound to have an upwards push on house prices.

I suspect that, for the moment, rents may well be rising, but it's unsustainable. House prices won't rise on the back of it though - banks won't lend.

[Kurt Barlow]

Yep - Im amazed at how quickly renters are paying off my mortgage whilst I work abroad

[Bruce Banner]

I suspect that, for the moment, rents may well be rising, but it's unsustainable. House prices won't rise on the back of it though - banks won't lend.

And many who don't need to borrow won't buy .

[crash2006]

Where is the argument that HB has pushed up prices"(ive said many times HB isnt the cause)"because it hasnt it was an excuse that the government ran to reduce payments, to blame the poor and to keep prices rising. They need to build social homes, they need a massive project like the 50s otherwise this country will fall on its knees.

I did say prices will rise because of the change in HB payments, forcing them to relocate to other areas increasing the prices in those areas while the void fills up by otehrs that will pay the price asked.

This Government is a complete mess they have no idea what they are doing to the future labour force of this country and its future downgrading of its economic status.

Edited July 13, 2011 by crash2006

[winkie]

Says it all, really. What do you think the yield is for your landlord?

...there is little yield if any, anywhere at the moment....there is little yield if any, unless prepared to take big risks...with property there is little yield, high costs, possible high voids, together with negative growth not to mention the difficulty getting instant access to any money tied up in it....

A house is a home to live in and pay for......not an investment this century.

[Guest_flaps_*]

Where is the argument that HB has pushed up prices"(ive said many times HB isnt the cause)"because it hasnt it was an excuse that the government ran to reduce payments, to blame the poor and to keep prices rising. They need to build social homes, they need a massive project like the 50s otherwise this country will fall on its knees.

I did say prices will rise because of the change in HB payments, forcing them to relocate to other areas increasing the prices in those areas while the void fills up by otehrs that will pay the price asked.

This Government is a complete mess they have no idea what they are doing to the future labour force of this country and its future downgrading of its economic status.

No, they just need to get all the unused housing stock into use. Oh and make a ruling that whenever a property goes to aution, it sells for whatever the highest bid is. I know a number of properties around my way which have not met the banks reserve price, so back on the market they go, no one buying, no one able to rent, just an empty waste of a pile of bricks someone could be utilising.

[leicestersq]

No, they just need to get all the unused housing stock into use. Oh and make a ruling that whenever a property goes to aution, it sells for whatever the highest bid is. I know a number of properties around my way which have not met the banks reserve price, so back on the market they go, no one buying, no one able to rent, just an empty waste of a pile of bricks someone could be utilising.

A more liberal law on squatting would help with unused homes.

[Guest_flaps_*]

A more liberal law on squatting would help with unused homes.

Actually, as a young 'un, I was dead against squatters I tghought they should be allowed to be forceably removed and given a good kicking along the way.

However, I'm all for them now. In fact, I will actively start encouraging it. Its sick we have so many empty properties/people sitting on empty ones they won't let and just expect capital appreciation from. ****** 'em, I want to see an explosion of squatters, might make people think a little differently.

[erranta]

There's a homes shortage, but not property shortage.

Adrian Wray, Director, Bradgate Property Management,Leicestershire

"This is definitely a trend we are experiencing across the East Midlands with the lack of quality properties being made available through licensed agents.

The rental properties available are often offered through unlicensed lettings agents, so we would urge prospective tenants or landlords to research their agent carefully, or else risk an unprofessional service."

Taken from a quick glimpse at the Arla website

- so the shortage ARLA members are experiencing is due to landlords telling them to stick their excess fee demands where the sun don't shine!

Edited July 13, 2011 by erranta

[@contradevian]

Actually, as a young 'un, I was dead against squatters I tghought they should be allowed to be forceably removed and given a good kicking along the way.

However, I'm all for them now. In fact, I will actively start encouraging it. Its sick we have so many empty properties/people sitting on empty ones they won't let and just expect capital appreciation from. ****** 'em, I want to see an explosion of squatters, might make people think a little differently.

I thought that last night after watching ITV's "homes from hell" where we were made to feel sorry for a guy that can afford to let a London mansion sit empty and pay £50k in legal fee's to get them evicted. There is not enough squatting going on in my opinion, indeed it might take the gloss off the London prime market. Also not enough checks on where this hot money is coming from where people can sit on mansions and do nothing with them. London's economy must be awash with hot money, despots, oligarch's and organised crime (and by the latter I mean banking).

[leicestersq]

Actually, as a young 'un, I was dead against squatters I tghought they should be allowed to be forceably removed and given a good kicking along the way.

However, I'm all for them now. In fact, I will actively start encouraging it. Its sick we have so many empty properties/people sitting on empty ones they won't let and just expect capital appreciation from. ****** 'em, I want to see an explosion of squatters, might make people think a little differently.

Yes. I am all for a simple law to quickly evict people if they get into your home and squat whilst you nip out for a loaf of bread, or go on a holiday.

It is a different matter entirely if the home isnt being used. Sure, there are difficult cases where a house is being sorted out after a death or something, but there are empty homes out there with no such complications. The enclosure act allowed a lot of rich people to get more land for free. Squatting seems to be a way of redressing the balance in some small way. If you squat in a home that has been unused for say one year, and there were no issues on that title during that time, and you squat there for six months, you should get the home.

Use it or lose it I say.

[Bloo Loo]

I suspect that, for the moment, rents may well be rising, but it's unsustainable. House prices won't rise on the back of it though - banks won't lend.

Asking rents.

rents dont rise for those in contract.

[newbonic]

A more liberal law on squatting would help with unused homes.

There's several hundred quite nice unoccupied flats in the centre of Sheffield e.g. St Pauls tower. Been like that for at least a year. But they remain largely unsold and unnocupied because their asking price is too high. I suspect that if the developers accepted that they'd only sell the bulk of them if their price was dropped by 30 or 40%, then their asset's book price would be so low they'd go bust!

It's the only reason I can think of for them to remain empty when there's supposed to be a housing shortage.

If the rise in tuition fees puts off a significant % of the 40,000 students that flood Sheffield in term time, then there's potentially a loss of thousands more potential tennants (whom I assume will stay at home living off mum n dad).