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Rental arrears hit six year high

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Why should anyone be surprised by that?......borrow the rent for one month how can the rent be paid the following month?......expenditure exceeding income.;)

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Pretty obvious this would happen. Renters, who will on average have lower incomes than OO anyway, havent benefitted from lower monthly housing costs resulting from low rates to offset their stagnant incomes. Just one injustice resulting from current policy.

I

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12 minutes ago, nothernsoul said:

Pretty obvious this would happen. Renters, who will on average have lower incomes than OO anyway, havent benefitted from lower monthly housing costs resulting from low rates to offset their stagnant incomes. Just one injustice resulting from current policy.

I

Fairness when rents fall at the same pace as borrowing rates.......those with the least have always paid the most as a percentage of income.....no change there then.;)

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I'm sorry to see these figures, which represent a lot of financial distress for renters.

What stands out most to me is not the trend, but the insane magnitude: around 10% of all rentals are in arrears? Compared to car loans (a small fraction of one percent, as discussed here recently) and mortgages, which must be around 1 or 2 percent, this is off the scale, and speaks of a desperate level of uncertainty in housing for a large slice of the population.

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  • On an absolute basis, the number of households in serious arrears – defined as two months or more – was 21,080 in December 2016. This is above than the 18,127 cases recorded in the previous month.

21k households, two months or more in arrears over Christmas. Up 3k on the previous month. Dickensian. 

Is there a spike in arrears every Christmas for four of the last five years according to that graph?

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54 minutes ago, Toast said:

I'm sorry to see these figures, which represent a lot of financial distress for renters.

What stands out most to me is not the trend, but the insane magnitude: around 10% of all rentals are in arrears? Compared to car loans (a small fraction of one percent, as discussed here recently) and mortgages, which must be around 1 or 2 percent, this is off the scale, and speaks of a desperate level of uncertainty in housing for a large slice of the population.

It speaks of how risky that BTL loans are. And IO BTL especially.

IO BTL is a commercial bridging loan and needs to be charged at ~15%.

 

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1 hour ago, spyguy said:

It speaks of how risky that BTL loans are. And IO BTL especially.

IO BTL is a commercial bridging loan and needs to be charged at ~15%.

 

Putting aside the mild discomfort this may cause landlords, and at the risk of being a snowflake, that is far too many families having sleepless nights not knowing how they are going to survive.

Not really surprising when the banks think that 30% of wages is the max an OO should pay but have no problem allowing landlords to gouge 60% of wages via an IO loan

I am as far from left wing as can be but this must be stopped.

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6 hours ago, CunningPlan said:

Putting aside the mild discomfort this may cause landlords, and at the risk of being a snowflake, that is far too many families having sleepless nights not knowing how they are going to survive.

Not really surprising when the banks think that 30% of wages is the max an OO should pay but have no problem allowing landlords to gouge 60% of wages via an IO loan

I am as far from left wing as can be but this must be stopped.

A massive credit expansion, which bust, with the cost falling on tax payers.

Money used to turn a whole generation into serfs, using their tax to sub the mortgage risk, then their take home to service the debt.

All with the approval of that loon Brown who was going to fight fight fight for the poor. What a total tnuc.

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I'd love to see that on a longer timescale. Wonder what the average was pre 2008? It's obscenely high now but having been above 7% since 2010 also seems ridiculous.

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Rent/mortgage consumes most of the disposable income. People don't have much money left to buy other things so in a way the overall economy suffers.

Housing is a basic need. Stock market style speculation should not be allowed. To tackle the housing crisis BTL should be made illegal.

Edited by Fairyland

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32 minutes ago, Fairyland said:

Rent/mortgage consumes most of the disposable income. People don't have much money left to buy other things so in a way the overall economy suffers.

Housing is a basic need. Stock market style speculation should not be allowed. To tackle the housing crisis BTL should be made illegal.

No. not so much speculation - leverage.

BTL is a commercial loan, which is risky and needs pricing so.

IO BTL is a non amortising commercial loan. These are off the scale fcking insane.These should not exist at all.  Most commercial loans are 10-15 years repayment. And a lot of IO BTL were being sourced by building societies FFS!

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