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Rent Rise Is Fastest For A Year, Says Lsl

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http://www.bbc.co.uk/news/business-14934316

The cost of renting a home rose at its fastest rate in a year - with the average tenant paying £713 a month, a survey has said.

Tenants paid 1.2% more on average to rent a property in the UK in August than they did in July, according to LSL Property Services.

The cost rose quickest in Wales and the South East of England in the last month.

Tenant arrears increased for the first time since April, the survey added.

"We are in the thick of the busiest time of year for the rental market, and red-hot demand for properties is driving rents up at their fastest monthly pace in the last 12 months," said David Newnes, LSL's estate agency managing director.

"Recent graduates moving for their first jobs have further exaggerated the long-term and growing demand from frustrated buyers.

"In the last two years, average rents have risen by more than £50 a month."

Buyer frustration

Mr Newnes said he expected further rent rises in the coming months.

This is bad news for people like Marc Mclean, who has been renting since 1992 and is hoping to buy his first property.

He said he had saved up £20,000 for a deposit to buy a home, but was now getting mixed messages as to whether it was a good time to buy.

"I am 38 and I want to get a mortgage paid off by the time I retire," said the NHS service manager, who lives in north London.

"Renting at the moment is affordable, but lots of people say that renting is dead money. I am 70% sure I want to buy."

He said his concern was that his property would fall in value if he bought it in the current economic climate.

The survey from lettings agent LSL, which owns Your Move and Reeds Rains, suggested that London had seen the biggest rent rises in England and Wales in the last year, rising by 6.6%, followed by a 6% rise in the West Midlands and a 4.3% increase in the North East of England.

The only fall was in Yorkshire and the Humber, where the cost of renting a home dropped by 0.5% in the last year, it suggested.

Tenant arrears increased for the first time since April, with 10.7% of all UK rent unpaid or late by the end of August. This was up from the 9% of rent unpaid or late in July.

However, Mr Newnes said there was often a short-term blip in tenant arrears in August, as summer holiday costs squeezed family finances.

£20,000 deposit, is that all?

All young people are well at truly ******ed in this country.

http://www.bbc.co.uk/news/education-14785676#student_finance_form

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The BBC spin this story out that rents are going up due to "frustrated buyers" - i.e. they cant afford to buy because property is to expensive so there is more competition for rental and that pushes the price up.

Is there not a limit to actually what is in peoples pockets?

Don't make sense to me, it this economy I would expect to see rents falling.

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If you think about the numbers, it's a nothing story.

August was 'the fastest rise in a year'. I.e. since last august. So basically pretty similar to last year.

I don't know if august is seasonally a strong month, probably as all the student rentals and graduate places come up for review.

I too am sceptical about these rental ramping stories.

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Anecdotally, using my rought rental rule of thumb - rent/bedrooms - rentals are back to where they were 15 years ago - 200-250/bedroom.

There is a huge amount of supply to chose from too.

When I last rented, houses shifted quickly - it took about a week to fill one.

Now they hang around for ages - the voids must be 2 to 3 months at the end of each 6 month occupancy, which is another thing I see - tenant churn.

Some rentals near me are clocking up there 7 month of void - and counting.

I'm not saying the article is lying - its possibly true that 'asking' rents are going up but relaity is 'getting' rents are down and voids are up.

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So a survey from a VI with a strong interest in seeing rents rise has found that they are. Quelle surprise!

The only shock is that they have risen so little (less than inflation). Me - I'm on the 3 year of zero rent increase.

I don't know whether to laugh or cry at the chap who has been renting since 1992 (about the same as me). He must be in his late 30s at least and has amassed £20K ie roughly £40-50 a month for the time he's been renting. I'm not having a dig at him - £20K is a lot of cash but it's peanuts when set against the price of a house (and will be wiped in flash if prices continue to decline). FTBs like him are hardly going to save the housing market.

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Property PR spin cannot now claim house prices are rising, so instead the spin is focussed on the claim that rents are rising. As many here have reported, in fact rents have generally held or fallen in real terms, except possibly in London. This is yet another example of media, and especially the BBC, publishing any old PR they are given and presenting it as "news". No checking, no attempt to challenge the figures, no mention of contrary research, no evidence of questioning how these stats were arrived at, what the sample was, or any kind of proper journalism. It is just a regurgitation of a vested interest press release.

You can leave a message on the BBC page below if you are fed up with the BBC's habit of publishing uncontested "research" from vested interests:

http://news.bbc.co.uk/newswatch/ukfs/hi/default.stm

Edited by VacantPossession

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http://blogs.telegraph.co.uk/finance/ianmcowie/100011999/buy-to-let-britain-booms-amid-mortgage-famine-but-can-it-last/

“Such strong competition for limited accommodation is taking its toll on rents, and they will continue to climb for as long as the mortgage market remains at a standstill. As rents rise, driving down affordability in the private rented sector, many renters are cutting costs by turning to flatshares.”

Others are simply failing to pay their rent. According to LSL, 10.7pc of all the rent due last month went unpaid – an increase in arrears of nearly a fifth over the last year. Even when demand consistently runs ahead of supply, there is only so much the market can bear before signs of strain start to show.

1 in 10 not paying their rent.....

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Do we have a more authoritative guide to rental price rises? Would it be included in the inflation stats? The VI know the value of these indexes, the Halliwide index being a case on point over the past 20yrs or so. Hate to see this one being rolled out every month, and in writing to the BBC would like to compare it to 'official' stats.

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Its an average.

As families drop the market and rent in bigger homes, clearly the average will go up.

doesnt mean that rents are rising at all.

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Yep - and the Scotsman used this article to tell people that 'rents are soaring'.

Rents soar

When in fact the average rise was barely 1% over the year - and rents today are the same level as they were in 2008. Which is a rather different and actually accurate headline....

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Yep - and the Scotsman used this article to tell people that 'rents are soaring'.

Rents soar

When in fact the average rise was barely 1% over the year - and rents today are the same level as they were in 2008. Which is a rather different and actually accurate headline....

Yes and looking at the historical chart on LSLs report, it seems average rents across the UK hit £688/month in August 2008. So I make that a whopping 1.2% pa rise. Funny, I've not seen that figure mentioned in the press today :rolleyes:

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The commentary on the BBC has some telling comments:

steve -

'have been renting for 14 years, I used to be a lettings manager for a major Estate Agent.

These surveys are normally conducted by the industry itself and aim to hype up prices, if you ask an Estate Agent if they think prices will rise they will almost inevitably say yes.

The truth is that adjusting for inflation even in the South East Rentals are 30% less than they were 15 years ago.'

steve may be lying about working for an EA or not - the fact he can do percentages and adjust would make him brighter than any EA Ive ever met,

but his real rental figures sound correct.

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Yes and looking at the historical chart on LSLs report, it seems average rents across the UK hit £688/month in August 2008. So I make that a whopping 1.2% pa rise. Funny, I've not seen that figure mentioned in the press today :rolleyes:

Yep - pure spin. Nice to see the journalists can work this out. :rolleyes:

Churnalism pure and simple. Pretty lame.

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Anecdote for you all if you don't believe this article, at least in London, rents are increasing. The place I rented last year cost me £1,000 pcm. This year I noticed that rents were increasing in my area, Colliers Wood, SW19, and knowing the landlady is a greedy b!tch plus having my second kid, etc, I decided to buy a house. Once I gave notice, it took no time for SW19, the agency, to get involved and they put the flat on the market two days later. They had two viewings that morning, both were keen. The second offered the full asking price of £1,200. By that afternoon the flat was taken off the market. A £200 increase in a year. This is no amazing flat, it was advertised as a 2 double bedroom flat but I would say that it is infact a 1 and a half bedroom flat.

She tried to nail me on deposit too but I told her to do one.

Sad but true this story.

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Anecdote for you all if you don't believe this article, at least in London, rents are increasing. The place I rented last year cost me £1,000 pcm. This year I noticed that rents were increasing in my area, Colliers Wood, SW19, and knowing the landlady is a greedy b!tch plus having my second kid, etc, I decided to buy a house. Once I gave notice, it took no time for SW19, the agency, to get involved and they put the flat on the market two days later. They had two viewings that morning, both were keen. The second offered the full asking price of £1,200. By that afternoon the flat was taken off the market. A £200 increase in a year. This is no amazing flat, it was advertised as a 2 double bedroom flat but I would say that it is infact a 1 and a half bedroom flat.

She tried to nail me on deposit too but I told her to do one.

Sad but true this story.

I think almost everyone posting here has acknowedged the exception in London. Have a look elsewhere and you will see that nationally rents have not risen in real terms, and in many regions rents are falling.

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I think almost everyone posting here has acknowedged the exception in London. Have a look elsewhere and you will see that nationally rents have not risen in real terms, and in many regions rents are falling.

That I can believe. Wonder what it is like in areas like Ashford?

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Rents may be slightly higher but what about the rise in non payment of rent, what about the depreciation in capital when compared to rising inflation......in it for the long term, yeah right till interest rates rise.....the rise maybe something to do with the higher rental turnover this time of the year, student digs etc.......rents will always have to run parallel to incomes or benefits....high rents and overcrowding do not go together. ;)

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  • 284 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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