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Uk Rents 'rise By 2% In A Year' - Great News For Gdp

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http://www.bbc.co.uk/news/business-28803047

The cost of renting a home has risen by 2% in the last year, with increases seen across nearly every region of the UK, a survey has suggested.

The average cost of renting a home stood at £753 a month, according to LSL Property Services.

This was up from £738 a month in July last year and was the highest level seen since November.

But official figures for the second quarter of the year showed a 1% annual rise in the UK.

The Office for National Statistics (ONS) said last month that private rental prices grew by 1% in England, 1.1% in Scotland and 0.2% in Wales in the 12 months to the end of June.

Great news for imputed rent in the made up GDP figures.

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Yes, I want to pay more rent to my LL to increase GDP, for the good of the country! I only hope that the many mortgage holders in the country can join me, with increasing IR's, in paying increasing costs and help the UK's GDP be the best in the world! :D

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CPIH has become such an embarassment the ONS are disowning it. Any professional outfit responbile for its actions would have not accepted it in the first place.

http://www.mindfulmoney.co.uk/wp/shaun-richards/how-not-to-measure-inflation-in-housing-costs-british-style/

CPIH grew by 1.8% in the year to June 2014, up from 1.4% in May.
UK house prices increased by 10.5% in the year to May 2014, up from 9.9% in the year to April 2014.

The fundamental issue here is that house price inflation is raging but it is not being picked up by the housing costs measure. Even worse in what must be quite an embarrassment for those who supported it, CPIH manages to be below the headline CPI rate of annual inflation which is currently 1.9%. So adding a booming assert class reduces measured inflation, how does that work? Up is again the new down.

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The ONS have done nothing but fiddle the figures for years.

I reckon the switch from RPI to CPI as the 'main' measure was done deliberately to hide Brown's housing bubble. And the way they continually rework the 'basket' for these figures means that it's in no way an objective measure of real inflation.

Say the basket starts off with branded soft drink. Branded soft drink gets more expensive. Whoops, the inflation figure goes up. Lots of people can't afford the branded stuff, so they switch to buying own brand instead. ONS changes the basket 'to reflect buying habits'. Branded soft drink can now inflate as fast as it likes, our standard of living is in the toilet, and the figures end up telling us how expensive it is to buy lentils, gruel, and consumer electronics, because that's all people can afford any more.

Real inflation is probably double even the RPI figure.

And we all know how laughable the Bank's inflation targeting has been, even with the ONS doing their best to 'help'! How many letters did Mervyn King have to write? Always with some excuse for rising costs, and with their 'fan charts' showing inflation falling back, which it never did.

As for the idea that things costing more means the country is doing better, it's laughable. Why don't I sell you a tulip bulb for the entire contents of your bank account, and then buy it back for the same price? If we all did that a couple of times a week we'd have the highest GDP on the planet!

GDP may as well be called 'rate of increase in inequality', based on this methodology.

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Strange, deflationists repeatedly claimed that rents couldn't possibly rise yet against a backdrop of static wages and cost-of-living rises they have done so.

Looks like people can always be squeezed for even more cash when it comes to shelter.

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http://www.bbc.co.uk/news/business-28803047

Great news for imputed rent in the made up GDP figures.

The LSL report title is Buy-to_let index so not the best point to start from. I have linked it http://www.lslps.co.uk/documents/buy_to_let_index_jul14.pdf

It shouldn't take too long to read. Just reading the report and it reads like a sales piece. (edited)

Edited by Ash4781

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I'm seeing rents up way over 2% around south hants and Dorset on rightmove. Anything between 5-10% increases over a year.

I know the theory is that they only go up with wages, but that does not seem to be the case anymore.

If LL's want to jack up prices, they are going to. That's the only rule now.

London rents will skew the national average, BTL is sucking in affordable rentals then giving them a cheap makeover and returning them with a couple of hundred extra asking per month, perhaps BTL is becoming an alternative to owning? Doesn't Mmr favour BTL? Anyone else in the LL game is just using the publicised increases to jack it up

Edited by hans kammler

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Strange, deflationists repeatedly claimed that rents couldn't possibly rise yet against a backdrop of static wages and cost-of-living rises they have done so.

Looks like people can always be squeezed for even more cash when it comes to shelter.

Maybe they're just stupid and just accept the advertised prices rather than haggle for a discount. It really wouldn't surprise me. And it wouldn't surprise me if letting agents acted as a cartel.

Edited by Eddie_George

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Maybe they're just stupid and just accept the advertised prices rather than haggle for a discount. It really wouldn't surprise me. And it wouldn't surprise me if letting agents acted as a cartel.

We are going on holiday with friends later this year - a week in France.

We had a budget but when I looked it wouldn't get us anything that good.

So I just emailed the owners of some really nice looking places and said "would you do it for X", every single one agreed to the price I offered. We ended up saving over £400 on the advertised rate. Should have gone in lower :)

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These are LSL statistics which of course AlJabeeba parrot as fact without any further investigation.

Basically saying 'BTL, fill your boots, rents can only go up!'

Edited by aSecureTenant

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These are LSL statistics which of course AlJabeeba parrot as fact without any further investigation.

Basically saying 'BTL, fill your boots, rents can only go up!'

Although LSL press releases always read like a marketing brochure, I don't think they play footloose with their stats in the way a VI like the CML does (doesn't mean to say that their methodology isn't flawed though). They're just selective with the interpretation.

Here's what the LSL recorded rents look like over the past three years. Adjusted for CPI inflation, only London and the SE have shown any real growth, and we're left with just London if we deflate by RPI.

LSL_BTL_July14.gif

http://www.lslps.co.uk/documents/buy_to_let_index_jul14.pdf

http://www.lslps.co.uk/documents/buy_to_let_index_jul11.pdf

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