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Rents Rising At Fastest Rate Since 2010

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Landlords rejoice as rents - up almost 5pc in a year - add to the gains made through rising property values Rents are rising nationwide at their fastest rate in five years and are up 4.6pc over the past year, according to one of Britain's biggest chains of lettings and estate agencies. As a result rents have hit an all-time high with the average, monthly rent now at £774.

Mortgage rate rise would make buy-to-let 'unviable' in 7 out of 10 regions Despite the hike the average gross rental yield on a rental property in England and Wales stands steady at 5.1pc, unchanged since April 2014.

But landlords' total returns, which take into account a combination of price increases and rent, are slightly down, reflecting lower levels of house price inflation in recent months. Adjusting for void periods between tenants, total annual returns on an average rental property now stand at 8.9pc over the twelve months to April 2015. This compares to 10.2pc over the twelve months to March and 11.5pc a year ago. There was more good news for landlords though, as the data shows that tenants are becoming more reliable, with the proportion with rent in arrears reducing to 7pc.

Meanwhile in London, rent hikes are slower but have reached a new peak of 7.8pc. * Landlords underestimate real £8,359 cost of buy-to-let Adrian Gill, director of estate agents Reeds Rains and Your Move, which compile the buy-to-let index, warned landlords "not to get over excited". https://uk.finance.yahoo.com/news/rents-record-high-rising-fastest-084427843.html

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The last numbers I saw showed residential reposessions were falling much faster than BTL. Suspect that some are treading water / keeping the plates spinning.

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Falling in Welsh region (sic!)

Aye going from bad to worse for the BTL brigade in this part of the world ..can't be that long now

Lets see if theres a regional benefit cap this could be the final nail in the coffin for a fair bit of Wales

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How do asking price rents compare with actual rents?

Now and then I check rentals on zoopla, mostly in sw17, and there are always stacks coming up on the 'most reduced' option.

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I wonder if some of the savings from lower oil prices have simply fed into rents, according to Ricardo's law of rent this is where the rental increases in the UK an USA are coming from.

Now supposing oil prices rose and interest rates went up 0.5%, what do we suppose would happen?

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according to one of Britain's biggest chains of lettings and estate agencies

Or, put another way: EA says pile into BTL.

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Looking at the graphs here:

http://www.rentindex.co.uk/Graphs.aspx

...and doing the maths, I reckon the annualised rental increase from Jan 2008 to Jan 2015 is about 1.55%.

The average inflation rate over that period (CPI, I think) taken from here, with some maths, http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html, is 3.1%.

So this article is just noise to encourage BTL, no?

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...The average inflation rate over that period (CPI, I think) taken from here, with some maths, http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html, is 3.1%.

That's RPI but a guide as good as any after all the index fiddling.

Also try http://www.calculateinflation.com/uk/ for both RPI and CPI numbers calculated across time.

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Looking at the graphs here:

http://www.rentindex.co.uk/Graphs.aspx

...and doing the maths, I reckon the annualised rental increase from Jan 2008 to Jan 2015 is about 1.55%.

The average inflation rate over that period (CPI, I think) taken from here, with some maths, http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html, is 3.1%.

So this article is just noise to encourage BTL, no?

According to landlord insurance agency Homelet, rents for existing tenants have risen only modestly since 2008. That's to say, most are above where they were at the the peak of the Brown bubble in 2008.

OTH, rents for new tenants (and those obliged to move) have soared beyond even that. Obviously, the bulk of this increase is located in London and the SE.

http://homelet.co.uk/homelet-rental-index

rents1.png

April 2015 headlines...
  • In the three months to April, average rental values for new tenancies in the UK were 10% higher than the same period last year
  • The annual growth in average rental values for the three months to April (10%) was higher than 2014 (6.6%) and 2013 (2.9%)
  • In the three months to April 2015, average tenant incomes were 2.5% higher than the same period last year
  • In the three months to April 2015, average rents for new tenancies in London are 7.5% higher than the same period last year
  • In the three months to April 2015, average rental values for new tenancies in London (£1,436pcm) were £100 more expensive per month when compared to average rental values in the same period in 2014 (£1,336pcm)
  • When London is excluded, the average UK rental value in the three months to April 2015 was £730pcm - this is 7.4% higher than the same period last year (£680pcm)
  • In the three months to April 2015, average rental values have increased in eleven out of twelve regions in the UK

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An update on the homelet figures, for September 2015

http://homelet.co.uk/homelet-rental-index

  • Average rental values for new tenancies in the UK were 8.5% higher than the same period last year
  • The annual growth in average rental (8.5%) was the same as 2014 (8.5%) and higher than 2013 (4.9%)
  • Average tenant incomes were 2.5% higher than the same period last year
  • Average rents for new tenancies in London are 6.6% higher than the same period last year
  • Average rental values for new tenancies in London (£1,555pcm) were £96 more expensive per month when compared to average rental values in the same period in 2014 (£1,459pcm)
  • When London is excluded, the average UK rental value was £762pcm - this is 4.6% higher than the same period last year (£729pcm)
  • Average rental values have increased in nine out of twelve regions in the UK

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According to landlord insurance agency Homelet, rents for existing tenants have risen only modestly since 2008. That's to say, most are above where they were at the the peak of the Brown bubble in 2008.

OTH, rents for new tenants (and those obliged to move) have soared beyond even that. Obviously, the bulk of this increase is located in London and the SE.

That's very much our experience. If we moved, we'd be paying at least another £100 a month for a similar property (SW16), so we stick where we are and hope the landlord doesn't get greedy...

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An update on the homelet figures, for September 2015

http://homelet.co.uk/homelet-rental-index

  • Average rental values for new tenancies in the UK were 8.5% higher than the same period last year
  • The annual growth in average rental (8.5%) was the same as 2014 (8.5%) and higher than 2013 (4.9%)
  • Average tenant incomes were 2.5% higher than the same period last year
  • Average rents for new tenancies in London are 6.6% higher than the same period last year
  • Average rental values for new tenancies in London (£1,555pcm) were £96 more expensive per month when compared to average rental values in the same period in 2014 (£1,459pcm)
  • When London is excluded, the average UK rental value was £762pcm - this is 4.6% higher than the same period last year (£729pcm)
  • Average rental values have increased in nine out of twelve regions in the UK

The UK, what a fantastic place to be a young person. In the UK you pay top dollar yet get the worst tenant rights in Europe.

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An update on the homelet figures, for September 2015

http://homelet.co.uk/homelet-rental-index

  • Average rental values for new tenancies in the UK were 8.5% higher than the same period last year
  • The annual growth in average rental (8.5%) was the same as 2014 (8.5%) and higher than 2013 (4.9%)
  • Average tenant incomes were 2.5% higher than the same period last year
  • Average rents for new tenancies in London are 6.6% higher than the same period last year
  • Average rental values for new tenancies in London (£1,555pcm) were £96 more expensive per month when compared to average rental values in the same period in 2014 (£1,459pcm)
  • When London is excluded, the average UK rental value was £762pcm - this is 4.6% higher than the same period last year (£729pcm)
  • Average rental values have increased in nine out of twelve regions in the UK

Umm, yeah. I'd really give these people a lot of credibility as they're incapable of basic maths (or proof-reading a press release).

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Graph%20of%20price%20of%20Housing%20Rent

This graph says it all

If people get paid more but the extra money is sucked up by rent, how the hell does anybody expect the economy to grow? This would become a steady state - or stagnation.

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Graph%20of%20price%20of%20Housing%20Rent

This graph says it all

If people get paid more but the extra money is sucked up by rent, how the hell does anybody expect the economy to grow? This would become a steady state - or stagnation.

Define growing economy.

Situation A, year 0:

Income £100

Rent £50

Energy costs £20

Taxes £20

Other goods £10

Money left at end of month £0

After several years of inflation income and costs have all risen ten-fold

Situation B, year x

Income £1000

Rent £500

Energy costs £200

Taxes £200

Other goods £100

Money left at end of the month £0

Has the economy not grown (despite the fact that your money goes no further)?

GDP per capita adjusted for inflation and compared to costs (and possibly assessed against PPP) is needed to understand whether people are getting wealthier. The government just seems happy with growth (ie. increase in GDP)

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