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zugzwang

Brighton And Bristol Rents Up 18% In 2015

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I find this figure very hard to believe. I rented a house in November 2013 between Clapham and Wandsworth commons. A lot of houses in that area are all basically the same lay-out so it's pretty easy to compare prices between houses if they have roughly the same level of finish. Looking a Rightmove now, prices, if anything, have come down from where they were 2 years ago, probably because they've become ridiculously overpriced. We moved out of London again after living there for a year to a house that cost half as much and was three times larger (with a similar commute time to the office for my partner). We;ve rented for the past 10 years. Our current house is the cheapest, and nicest house, of the four houses we've lived in during that time.

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Couldn't find anything about Brighton or Bristol.

Bizarre, isn't it? The claim is in the press release http://homelet.co.uk/news/article/hri-data-reveals-uk-rental-market-hotspots but when you click on the link embedded in the sentence "New research from the HomeLet Rental Index reveals that Brighton, Bristol, Edinburgh and Newcastle recorded the largest increase in rents last year amongst the country’s largest towns and cities." it takes you to this page http://homelet.co.uk/homelet-rental-index. If you click on the link under the heading "View the latest report", you get to the December 2015 report http://homelet.co.uk/assets/documents/December-2015-HomeLet-Rental-Index.pdf which has figures for regions and London boroughs, but nothing for Bristol or Brighton.

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Buy To(i)Leters putting up rents to the level they can afford to buy the property at.

No one can afford the rents.

They ( the BTLers) can't afford to buy the houses with these silly rents

But still the FLS back banks lends.

It's a disastour in the making.

The BTLers dont seem to realise that people are at or past their limit.

Edited by TheCountOfNowhere

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Anecdotal data point. My dad lives in Brighton. Next door to him is a BTL, which regularly comes to market. My dad hears the owner's idea of the price. But it always drops over 20% from that on rightmove/zoopla before anyone rents it.

Which of those prices feeds the statistics in any particular report?

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Homelet says:

"The data included in the HomeLet Rental Index is gathered from our tenant referencing service. The rental amounts are based on the actual achieved rental prices for new tenancies in the reported month.

As well as information on average rental amounts for new tenancies, the HomeLet Rental Index also provides information on tenant demographics, such as their average age, income, previous residential status and property type they’re applying to live in."

So it's actual rents rather than asking. However, it doesn't say how large the sample is, overall or in any particular region or city.

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Bizarre, isn't it? The claim is in the press release http://homelet.co.uk/news/article/hri-data-reveals-uk-rental-market-hotspots but when you click on the link embedded in the sentence "New research from the HomeLet Rental Index reveals that Brighton, Bristol, Edinburgh and Newcastle recorded the largest increase in rents last year amongst the country’s largest towns and cities." it takes you to this page http://homelet.co.uk/homelet-rental-index. If you click on the link under the heading "View the latest report", you get to the December 2015 report http://homelet.co.uk/assets/documents/December-2015-HomeLet-Rental-Index.pdf which has figures for regions and London boroughs, but nothing for Bristol or Brighton.

From you final link:

In 2015, annual growth in rental values in Greater London slowed from a peak of over 12% in January to 6% in September
[. . .]
The annual growth in average rental values in Greater London (8%) was lower than 2014 (10.7%)

So rents in Greater London went down between January and September 2015 and have yet to recover their January 2015 peak? YoY negative in the next report?

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From you final link:

So rents in Greater London went down between January and September 2015 and have yet to recover their January 2015 peak? YoY negative in the next report?

There's the matter of how accurate the sample is. When the index was launched in 2011, Homelet claimed that it's based on actual rent figures from 3,000 letting agencies, but I can't find any mention of how many tenancy agreements are included each month.

There's a blog entry on the Shelter website on indices of this kind from July 2014 http://blog.shelter.org.uk/2014/07/lies-damn-lies-and-rent-statistics/

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There's the matter of how accurate the sample is. When the index was launched in 2011, Homelet claimed that it's based on actual rent figures from 3,000 letting agencies, but I can't find any mention of how many tenancy agreements are included each month.

There's a blog entry on the Shelter website on indices of this kind from July 2014 http://blog.shelter.org.uk/2014/07/lies-damn-lies-and-rent-statistics/

Thanks for the link. I actually take the opposite view to Shelter and think that the ONS statistics across all tenancies (as opposed to the private indices that exclude existing tenancies and so are not measuring average rents, just average rents for new tenancies) are far more useful for ascertaining how the market as a whole is behaving. If rent price increases for new tenancies are sustainable then they will eventually filter through. If not, not.

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