Rents 'drop' As More Students Check In

[rantnrave]

The article's last line poses the question 'then what'?

Rents 'drop' as more students check in

Thursday 10th November 2011

Rents for new tenants appeared to drop across the UK, including London, last month – but a seasonal variation was entirely responsible.

Referencing company HomeLet said that it was because more students had checked in to rental properties.

Nevertheless, it meant that the average cost of renting a home in greater London dropped for the first time this year, to an average of £1,158 per month.

However, despite the drop in rents, the cost of living in a rented home in London is still nearly 9% higher than the same time last year, and 23% more than in October 2009.

The average cost of renting a home in the UK also reduced from September to October by 2.5% to £763 per month, which is still over 4% higher than the same time last year.

There were only two out of 11 regions where there was an increase in average rental amounts between October and September – Wales and East Anglia.

John Boyle, managing director of HomeLet, said: “We do normally see a seasonal dip in actual rental prices at this time of year due to the amount of students being referenced.

“At a first glance the drop in rents would appear to be good news for tenants, however, when we see how expensive it is to live in a rented property compared to last year.

“With average rents rising at a much higher rate than average incomes, budgets are really being stretched, and if rental amounts increase as much in early 2012 as they have done in previous years, then renting may become unaffordable for an increasing number of people, particularly in London.”

From Letting Agent Today website

[Redcellar]

And when does the new cap on benefit rent payments kick in?

Public sector not funding landlords, private sector can't afford rent payments = fall in rents (volume or rates)

[tomandlu]

The article's last line poses the question 'then what'?

Indeed it does... why don't they ask it? Are they really that thick? Do they think there's a whole bunch of rich people waiting to rent these properties, who are currently... err... I dunno... hibernating in bushes?

[laurejon]

I think renting can become more affordable for young people if they are prepared to share. Long gone are the days when you can have an entire 2bed flat to yourself and your partner. In todays dynamic market place young people are thinking outside of the box by sharing with shift workers who work nights and use the beds during the day and often advertising their sofa for rent on gumtree known as couch surfing. All in all the expectations of many professionals are now changing with the times and the perception of space to myself at all costs is becoming something of the past.

[200p]

I think renting can become more affordable for young people if they are prepared to share. Long gone are the days when you can have an entire 2bed flat to yourself and your partner. In todays dynamic market place young people are thinking outside of the box by sharing with shift workers who work nights and use the beds during the day and often advertising their sofa for rent on gumtree known as couch surfing. All in all the expectations of many professionals are now changing with the times and the perception of space to myself at all costs is becoming something of the past.

Lol.Why not advertise your bed as well. They do that on submarines. Excellent. Das Boot.

Edited November 12, 2011 by Money Spinner

[porca misèria]

I think renting can become more affordable for young people if they are prepared to share. Long gone are the days when you can have an entire 2bed flat to yourself and your partner. In todays dynamic market place young people are thinking outside of the box by sharing with shift workers who work nights and use the beds during the day and often advertising their sofa for rent on gumtree known as couch surfing. All in all the expectations of many professionals are now changing with the times and the perception of space to myself at all costs is becoming something of the past.

You just came up with the plot of Cox and Box (1866).

[Self Employed Youth]

I think renting can become more affordable for young people if they are prepared to share. Long gone are the days when you can have an entire 2bed flat to yourself and your partner. In todays dynamic market place young people are thinking outside of the box by sharing with shift workers who work nights and use the beds during the day and often advertising their sofa for rent on gumtree known as couch surfing. All in all the expectations of many professionals are now changing with the times and the perception of space to myself at all costs is becoming something of the past.

Sounds like Orwell's experience of the slums in 'Down and out in Paris and London'. I forget which city has the highest ratio of women to men, but maybe it's time for me to move! I'll stay in bed all day and due to the overcrowding knock up half the woman there!

[OnlyMe]

Sounds like Orwell's experience of the slums in 'Down and out in Paris and London'. I forget which city has the highest ratio of women to men, but maybe it's time for me to move! I'll stay in bed all day and due to the overcrowding knock up half the woman there!

Grimsby, or it was at some time.

[Fairies Wear Boots]

According to the guardian money section, rents have hit an all time high and landlords can demand and get eye watering amounts for their properties. Buying is cheaper in all regions of the UK. It also quotes how house prices are still rising albeit giving the caveat "if you believe Halifax".

[Executive Sadman]

Assuming the landlord got a tracker before the credit crunch kicked in, he's seen his mortgage payments fall from ~5% to 0.5%. Someones making a mint.

[Fairies Wear Boots]

Assuming the landlord got a tracker before the credit crunch kicked in, he's seen his mortgage payments fall from ~5% to 0.5%. Someones making a mint.

Well if you do your sums using a low base rate then you can make it work.

[indirectapproach]

For what it's worth, the rent I'm getting on my gaff in London is considerably more than the mortgage would be.

I've got about 10% of valuation on an variable interest only mortgage (cash flow issues from 10 years ago) and the rent I'm getting is about 30% more than a full mortgage would be depending the valuation range. However, this is an interest only mortgage.

And even if London rents are nuts and I think they are, acquisition costs in London are even nuttier.

Sure, if you bought yourself a portfolio of stuff in London in the early 1990s and kept it you'll be making a mint now.

I don't know that anyone else is and my information is the London auction scene is far too buoyant for me to feel confident that UK property is a good buy at this time.