Jump to content
House Price Crash Forum
Sign in to follow this  
Guest muttley

Renting:supply And Demand.

Recommended Posts

Guest muttley

We are frequently reminded by the bulls that we should buy now,or rent forever.There will be no HPC,because at the first sign of a drop there will be a host of BTL landlords snapping up the 5% BMV bargains and renting back to the unfortunate "Missed the Boats".

The tax breaks afforded by SIPPS on residential property will add to the misery of the poor FTBs and STRs.

The theory goes that as the LLs buy up the housing stock the rest of the population are forced to rent.A shortage of rental property to tenants will result in a "Time to raise the rents" and a "rentier " society.

I beg to differ.

Why?Well,because we have options.

Unaffordable housing causes people to look at their options.

The obvious one is to stay living with your parents a little bit longer.

But the killer for the housing market is renting within your means.

Can't afford a house and your landlord wants to raise the rent? Easy,move in with some friends!

Not practical? Rent something cheaper!

My own situation is that I rent a 250k house,but could afford much more.That's my choice.I have options. More options than my landlord,anyway.

I think they call it "Supply and Demand"

Share this post


Link to post
Share on other sites

I think what you say is true. When you rent you tend to be prepared to sqeeze into much less space and share with a lot more people than if you were buying.

My girlfriend has 200K in the bank. She rents for 250pcm all in renting a room in her mates house who needs the cash.

We will probably get a place, and are considering renting in houses and areas that she would never buy. We might get a 1 bed for 500pcm.

If it was up to me I would share a 3 bed with 5 other people, as long as it had a couple of bathrooms, but my gf is a bit more picky than me!

I think a similar thing wll happen with students. More will go to uni close to home so they do not have to move out, or will move in to peoples spare rooms. I would love to see the uni-town mummy and daddys get shafted.

Its a bit harder if you have a family though I expect. Do you have school catchment areas and stuff to worry about???

Share this post


Link to post
Share on other sites

People are aspirational even when it comes to rental accomodation. Sharing with people is for the young folks as one gets older its not really a good option.

Share this post


Link to post
Share on other sites
Guest muttley

Its a bit harder if you have a family though I expect. Do you have school catchment areas and stuff to worry about???

Big time.The house we rent now is 45 mins for school run(both ways).With this in mind we have rented someting nearer for 200 a month less as from next month.

People are aspirational even when it comes to rental accomodation. Sharing with people is for the young folks as one gets older its not really a good option.

But it's always an option.

If you own a BTL you only have the option to rent it out at current market value.

Share this post


Link to post
Share on other sites

We are frequently reminded by the bulls that we should buy now,or rent forever.There will be no HPC,because at the first sign of a drop there will be a host of BTL landlords snapping up the 5% BMV bargains and renting back to the unfortunate "Missed the Boats".

The tax breaks afforded by SIPPS on residential property will add to the misery of the poor FTBs and STRs.

The theory goes that as the LLs buy up the housing stock the rest of the population are forced to rent.A shortage of rental property to tenants will result in a "Time to raise the rents" and a "rentier " society.

I beg to differ.

Why?Well,because we have options.

Unaffordable housing causes people to look at their options.

The obvious one is to stay living with your parents a little bit longer.

But the killer for the housing market is renting within your means.

Can't afford a house and your landlord wants to raise the rent? Easy,move in with some friends!

Not practical? Rent something cheaper!

My own situation is that I rent a 250k house,but could afford much more.That's my choice.I have options. More options than my landlord,anyway.

I think they call it "Supply and Demand"

Do you really think you have more options than your landlord? There's more than 1 tenant out there I guess you realise.

And another thing, I fully expect that my tenants should be renting within their means. If they aren't paying below 35% of their take home pay, I don't offer them a place. Letting them have a place where the rent is above 35% of their take home pay would be akin to irresponsible lending by the institutions!

:)

Share this post


Link to post
Share on other sites
Guest muttley

Do you really think you have more options than your landlord? There's more than 1 tenant out there I guess you realise.

And another thing, I fully expect that my tenants should be renting within their means. If they aren't paying below 35% of their take home pay, I don't offer them a place. Letting them have a place where the rent is above 35% of their take home pay would be akin to irresponsible lending by the institutions!

:)

And yet my rent hasn't changed in 18 months.

When we told the letting agent we were leaving he confessed he would have difficulty finding a tenant (a nearby property remained empty for over 4 months) so he got the landlord to offer a monthly "rolling" contract until we find something.We don't need it,as we already have.

Share this post


Link to post
Share on other sites
Guest Guy_Montag

When my landlady came round & said she was putting the rent up £100pcm, I told her I would move out. I've heard anything since. :)

Share this post


Link to post
Share on other sites

And another thing, I fully expect that my tenants should be renting within their means. If they aren't paying below 35% of their take home pay, I don't offer them a place. Letting them have a place where the rent is above 35% of their take home pay would be akin to irresponsible lending by the institutions!

If this was a policy followed by all landlords, then the price landlords can change would be very strictly constrained by wage levels.

And if wages aren't rising much, as is the case for many sectors at the moment, it wouldn't be possible for landlords as a whole to "raise the rents".

So... if rents are to rise, is it because wages are suddenly going to shoot up, or because lots of landlords are going to unwisely accept tenants paying far too large a proportion of their income on rent?

Share this post


Link to post
Share on other sites
Guest muttley

When my landlady came round & said she was putting the rent up £100pcm, I told her I would move out. I've heard anything since. :)

Well at least she had an option.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.