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Bbc Rents Could Increase 'at Least 25%' In Next Five Years

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http://www.bbc.co.uk/news/business-35154420

Rent rises could soon outpace house prices, warn surveyors
By Brian Milligan Personal Finance reporter

The cost of renting in the UK could rise faster than house prices over the next five years, surveyors have warned.

At the end of that period tenants could find themselves having to pay at least 25% more than they do now, according to the Royal Institution of Chartered Surveyors (Rics).

Simon Rubinsohn, Rics chief economist, blamed government moves to discourage buy-to-let landlords.

"In the long run I'm concerned that rents might increase rapidly," he said.

However, he predicted that house prices would continue to rise faster than rents in 2016.

According to Rics estimates, house prices will increase by 6% next year, and rents by 3%.

Rental 'strain'

Over the longer term, the Rics survey suggests rents could rise by an average of 5% each year for the next five years. House prices, it predicts, could rise by 4.7% a year.

The government has announced a series of measures to promote home ownership, but is introducing tax changes that will make life harder for landlords.

From 2017, they will be able to claim less tax relief on their profits. And from April 2016, they will have to pay a higher rate of stamp duty.

"Critically our principal concern with the measures announced by the government is that they are overly focused on promoting home ownership, at the expense of other tenures," said Mr Rubinsohn.

"Discouraging buy-to-let could see private rents take even more of the strain."

However, he welcomed the government plans to build more homes for sale, saying that could help ease house price growth.

Rics predicts that East Anglia is the region likely to see the fastest growth in house prices in 2016, at 8%, while the West Midlands and the South East will also outperform the market.

However, the North East of England is expected to see the slowest growth, at 3%.

They are probably correct though : (

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And the wage increases to support this rental increase will be coming when?

Double up on the wages or half the living space......choices.......a fool and their hard earned dosh are easily parted......thankfully most people are not that foolish. ;)

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Funny word 'could' - it means exactly what it says, yet is often used as though it means something completely different (eg, 'will').

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No surprises here from the vile BBC. Didn't I read somewhere that over half of their management and execs own one or more buy-to-let properties?

Doesn't seem very impartial then to be ramping rents now does it.

The corporation of self serving, paedophile harbouring champagne socialists.

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I'm cross-posting from my comment on the Bloomberg story in the news section of the site. They're whinging on behalf of landlords and saying that measures against landlords will lead to higher rents while house prices will magically keep increasing. It's the sort of economically illiterate stuff you'd see on a landlord forum, and almost as emotional.

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Downtrodden Landlord

  • (Words T. Wolfe / tune trad?)

    Pity the downtrodden landlord

    And his back that's all burdened and bent

    Respect his gray hairs, don't ask for repairs

    And don't be behind in the rent

    Open your hearts and your purses

    To a man that is misunderstood

    He gets all of your kicks and your curses

    Yet he wishes you nothing but good

    He tearfully begs you to show him

    You think he's a man, not a louse

    So remember the debt that you owe him

    The landlord who lends you his house

    When thunder clouds gather and darken

    You may sleep undisturbed in your bed

    But the landlord must sit up and hearken

    And wonder and worry and dread

    If you die, then you'll go in a hurry

    And you never will know your bad luck

    But the landlord must sit up with worry

    Has one of my houses been struck

    When a landlord resorts to eviction

    Don't think that he does it from spite

    He's acting on deepest conviction

    And what's right, after all, is what's right

  • But I see that your hearts are all hardened

    And I've been appealing in vain

    I hope my last plea will be pardoned

    As I beg on my knees once again

    As sung by Hamish Imlach

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No surprises here from the vile BBC. Didn't I read somewhere that over half of their management and execs own one or more buy-to-let properties?

Doesn't seem very impartial then to be ramping rents now does it.

The corporation of self serving, paedophile harbouring champagne socialists.

Yup ---- The BBC has been a MASSIVE PR Machine for HPI for at least 15 years now --- hence all those morning 'pwoperty porn' programmes about buying & selling property ad nauseum. It's one of the many scandals of hpi --- the BBC has been pumping the 'message' for YEARS. AND -- We pay for it!!!!

Simply incredbible... :rolleyes::wacko:

I am beyond anger now. I just totally despair for this country....

Edited by eric pebble

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I could have banged Kate Moss and Giselle Bunchen today.

I didn't - but that's not important.

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Now they're running with a story about a family living in a garage at £400 a month:

http://www.bbc.co.uk/news/uk-england-leicestershire-35158840

Braunstone Town family found living in unheated garage

A family with a six-year-old child has been found living in "sub-standard conditions" in a garage with no heating.

The partitioned space, near Leicester, had no smoke alarms, no adequate fire escape, a broken shower and only one working plug socket.

The tenants told inspectors they were paying as much as £400 a month in rent.

The landlord has been banned from renting the space again unless "extensive work" is carried out.

The Portuguese family of three, who have now been re-homed, were found living in a section at the back and side of the garage in Braunstone Town in October.

Their home, where they lived for seven months, consisted of a small kitchen, a bathroom and a sitting room which doubled up as a bedroom.

Environmental health officer for Blaby District Council, Phil Fasham, said there was no natural light in their living area and the main garage door did not open, meaning they could have been trapped had a fire occurred.

Mr Fasham said the couple paid rent in cash directly to the landlord in varying amounts but had paid as much as £400.

"For a property for people to live in, it's one of the worst I have seen because it was so tiny," he said.

Environmental Health has served a prohibition order on the property, which means the landlord, who has not been named, will be prosecuted if anyone lives there before extensive works bring it up to council-approved standards.

Blaby councillor Guy Jackson said it was "hard to believe ... any landlord thinks that it is acceptable to let a family live in those conditions".

The joke here is the landlord has been told he can rent the property out again if he does extensive work to approve standards.

Why isn't the F*cker in prison?

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people here have been saying that for over 10 years

Never did get an answer to this question. Will that be a ten year wait too?

I bought three years ago. Its looking like a good decision. Rent would of been 10k a year and house now done up is apparently worth 100k more. They'd have more to half overnight for me to loose money. Madness but sometimes easier to flow with the system.

You have thirty five years to go to retirement, you work two days a week, you bought three years ago and you've paid off your mortgage?

What's your line of work? Robbing banks?

I'm getting a signal on the troll radar here.

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As per my post on the BTL Scum thread last time RICs made these kinds of predictions they didn't quite come off as they expected:

Rents to rise faster than house prices in 2013, Rics says - BBC News, 14 December 2012

Surveyors are predicting that the cost of renting a home will rise by 4% in 2013, double the predicted rate of UK house price growth.

The Royal Institution of Chartered Surveyors (Rics) said that a slight improvement in the UK economy would be reflected in the property price change.

But many potential first-time buyers would be squeezed and see rents rise.

dgijir.jpg

Office for National Statistics: Index of Private Housing Rental Prices, July to September 2015

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I've said my story many times on here. I only went part time after buying a house outright.

I worked for many years in London, living like a student and travelled with work a lot so saved enough to buy a modest run down house outside London. Hardly a troll, many people here have done the same.

I'm 50/50 on your troll-ability.

Just out of interest,why does a home owner content with their decisions in life come on HPC ?

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