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Bear Goggles

Rents Rise Faster Than Wages

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Lots of partisan news reporting of this:

The Torygraph rejoices in the joy of landlords making money... (Or at least the press release from a letting agent does).

Whereas The Guardian laments the pressure put on tenants and the property owning dream drifting yet further beyond reach.

However it occurred to me that rents are deflating when you use the official measure of inflation. So the real headline should be:

Everyone gets poorer, but as usual people who work for a living are getting poorer quicker than the rentiers.

Not very snappy though.

Edited by Bear Goggles

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Lots of partisan news reporting of this:

The Torygraph rejoices in the joy of landlords making money... (Or at least the press release from a letting agent does).

Whereas The Guardian laments the pressure put on tenants and the property owning dream drifting yet further beyond reach.

However it occurred to me that rents are deflating when you use the official measure of inflation. So the real headline should be:

Everyone gets poorer, but as usual people who work for a living are getting poorer quicker than the rentiers.

Not very snappy though.

The pressure is on the housing market, BTL in particular, they need more Greater Fools.

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Hand in your notice to leave. See how quickly they retract the rise.

Not very quickly, I shouldn't think. Especially with the media coverage of rising rents at the moment.

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I'm sure it's been mentioned on here that the LSL Property Services rental index has some seriously dodgy methodology behind it.

e.g.

hotairmail said...

Did you know that LSL's 'rental price index' only tracks new rentals.

Totally flawed method of measurement for the rental market that mirrors that of the housing market which of course, is where Wrigglesworth hails from.

Many existing rentals will see rents staying the same or even falling as landlords avoid losing good tenants and the cost of voids.

Tuesday, February 22, 2011 01:14PM

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Not very quickly, I shouldn't think. Especially with the media coverage of rising rents at the moment.

It can be difficult to find good tenants, I'd be tempted to also ask for a 10% reduction - test the water. There's plenty more rentals in the sea so I hear.

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It can be difficult to find good tenants, I'd be tempted to also ask for a 10% reduction - test the water. There's plenty more rentals in the sea so I hear.

It depends on your situation. Maybe you have kids in the local school, perhaps the cost of moving and letting agent fees would be greater than paying the 12% extra, would you take that risk?

This is just an illustration of why residential tenancy law urgently need reforming in the new world of perpetual renting that has now been firmly established. Overall UK rents may be rising below inflation, but on an individual basis, the odds (and the law) are too stacked against the tenant.

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Mine (London) hasn't gone up in 10 years.

Benchmark: my old place, where I lived from March 2005 to May 2013.

Agent re-advertised it at £20/month more than I'd paid in 2005. After a couple of weeks, the price dropped to exactly the same. So the rent rise was exactly zero over eight years.

And that's if the new tenant didn't haggle and is paying the full asking rent.

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Benchmark: my old place, where I lived from March 2005 to May 2013.

Agent re-advertised it at £20/month more than I'd paid in 2005. After a couple of weeks, the price dropped to exactly the same. So the rent rise was exactly zero over eight years.

And that's if the new tenant didn't haggle and is paying the full asking rent.

Similar story, identical flat to one I moved into during 2007 currently available at asking rent of £20/month more then I paid(£575). Even if no haggling takes place(absurd given there are over 100 mostly identical flats in the estate which provides a steady stream of rentals) it represents under 3.5% rent rise in over 6 years. Being more realistic rents are flat or a few percent down nominally. Which fits with earnings.

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Mine (London) hasn't gone up in 10 years.

I was checking Rightmove tonight, just to test what's going on in my part of West London on 1-2 bed flats. Pleasantly surprised as no noticeable changed since I last looked a year or so ago.

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The only way to get a good pay rise seems to be to get another job. It is the difference between the inflation matching 3% and a healthy 10%. I know someone who got a 40% pay rise a few weeks ago. Undoubtedly underpaid previously. Rent, on the other hand, never seems to go up in my area. Game the system correctly, because no-one is going to look after your own interests for you.

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Wish I could talk my LL into dropping mine!

Moved to a new flat and the new rent was set lower than the last one, but slightly higher than the previous tenant of the new flat, but at these low rates who is complaining? The Landlord was immediately on about references from me and getting the deposit into a council deposit scheme, and how they legally had to give two months notice etc, so they seemed very straight and above board, always a good sign. To me if it means choosing a flat that is obviously long term (because I questioned the landlord about if they would sell up or no) and with a trustworthy landlord, or something less stable with a less trustworthy landlord, then for the sake of a few quid extra it is worth taking the more stable deal IMO. Now in Scotland landlords have to prove that your money is held in a deposit protection scheme and agents are banned from taking fees for all the little checks etc, so moving in the right direction (essentially the council have spotted a way to create some liquidity for themselves and have muscled in on the agents, but the tenant benefits, so all good IMO)

Edited by dances with sheeple

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