Jump to content
House Price Crash Forum

Recommended Posts

No sign of rents having gone up as result of tenancy fee ban, claim

January 23, 2020 | Rosalind Renshaw

https://propertyindustryeye.com/no-sign-of-rents-having-gone-up-as-result-of-tenancy-fee-ban-claim/

There is no sign of rents having increased as a result of the tenancy fees ban, it has been claimed.

The Deposit Protection Service says that average rents reached £777 during the third quarter of last year, but then decreased marginally to £773 in the final quarter.

The DPS also says that the proportion of incomes that tenants now spend on renting has gone down.

It fell from 32.64% in 2016 to 30.64% last year.

The DPS says that renting affordability has increased, due to a 2.69% increase in average salary over the same period.

It also says that there has been a £77 decrease in average rent deposits, from £905 to £828, since the introduction of the deposit cap last June.

Matt Trevett, managing director of DPS, said: “Although rents have risen over the past decade, other changes since 2016 have helped ensure renting has become on average more affordable.

“Predictions that rents would rise in response to the introduction of the tenant fees ban and deposit cap do not seem to have materialised, with many landlords seemingly declining to increase rents since last summer.”

The DPS says that average rents rose by 20% between 2010 and 2019 but by only 1% between 2016 and 2019.

London continues to be the most expensive rental region in the UK, with average monthly rents standing at £1,345 in Q4 2019 – over two and a half times the amount (£518) paid in the UK’s cheapest region, the north-east, during the same period.

Excluding London, average monthly rent during the last quarter of 2019 stood at £672, says the DPS.

Its full report is here: https://depositprotection.com/media/1611/dps_rent_index_q4_2019.pdf

Meanwhile a separate report on renting from Zoopla draws similar conclusions, although citing slightly different figures.

Zoopla, like the DPS, also says rental affordability has improved with costs increasing below earnings growth.

However, it says average rents rose 2.6% last year, to average £886.

It puts the average proportion a tenant pays on rent at 31.8%, down from 33.3% in 2016.

Zoopla has also recorded a 4% drop in the supply of rental homes, coupled with an 8% rise in tenancy demand during the last year.

Link to post
Share on other sites
7 minutes ago, Pebbles said:

What a surprise. Seriously where do they get these "experts" from who predicted rising rents.

That's economics for you. Seven decades of mathematised ideology masquerading as science.

Link to post
Share on other sites
1 hour ago, rantnrave said:

Worth checking the comments - the EAs seem to be the most surprised.

They are such a bunch of simple minded melts. There's even a video explanation incase the written numbers are a bit hard to understand.

Link to post
Share on other sites
6 hours ago, zugzwang said:

That's economics for you. Seven decades of mathematised ideology masquerading as science.

Economics would tell you that there would be no increase in rents.  Almost inelastic supply curve (in the short to medium term at least) - no change in the demand curve, hence no discernible change in price.

It's more EA's and VI's with vested interests not thinking things through........

Link to post
Share on other sites
8 hours ago, zugzwang said:

That's economics for you. Seven decades of mathematised ideology masquerading as science.

Er, did you mean 7 Centuries?

Economists in the 1300s (yes, that's what I actually heard said) thought that the Black Death would harm the economy because labour would become scarce, which it did.

What happened next though was that wages rose, the rich couldn't abuse or misuse labour any longer, it was too expensive.  Rising pay almost eliminated rural poverty.

And what are economists advocating today?  More population. Steve Keen says that if you row against the orthodoxy, you'll never get a top job in economics.

Now it all makes sense, the rich got in first and have been in control of the "science" ever since. 

"Economists - getting it wrong for 700 years".  Deliberately.

Link to post
Share on other sites
3 minutes ago, Bluestone59 said:

Er, did you mean 7 Centuries?

Economists in the 1300s (yes, that's what I actually heard said) thought that the Black Death would harm the economy because labour would become scarce, which it did.

What happened next though was that wages rose, the rich couldn't abuse or misuse labour any longer, it was too expensive.  Rising pay almost eliminated rural poverty.

And what are economists advocating today?  More population. Steve Keen says that if you row against the orthodoxy, you'll never get a top job in economics.

Now it all makes sense, the rich got in first and have been in control of the "science" ever since. 

"Economists - getting it wrong for 700 years".  Deliberately.

It probably did harm 'the economy' - if you define 'the economy' carefully enough, as something else, like the establishment. Same arguments made against leaving the EU by similar people. Blair, Soros.

Edited by Si1
Link to post
Share on other sites
1 hour ago, Exiled Canadian said:

Economics would tell you that there would be no increase in rents.  Almost inelastic supply curve (in the short to medium term at least) - no change in the demand curve, hence no discernible change in price.

It's more EA's and VI's with vested interests not thinking things through........

Droves of BTL landlords have sold up thanks to the tax changes introduced in 2015. Rental demand seems to be as acute as ever; net migration is still >250,000/yr. House prices in London and the SE have been falling for three years.

That being the case I'd argue it's the fear of voids in the current environment that's keeping rents flat. Landlords would rather take on additional risk than entertain the very real prospect of a loss-making sale.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 417 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.