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Figures from the Office for National Statistics (ONS) show that the median figure for private rented sector rents in England reached a record high of £700 a month as the UK headed into lockdown.

The ONS notes that this figure ‘has not been higher’.

The highest median rent of £1,425 a month was in London and the lowest in the north-east of England at £495.

Westminster is the mopst expensive location in the country with a median of £2,492 per month – five times the average rent in Hull where the average is just £420 a month.

The ONS data covers a period from April 1st 2019 to 31st March 2020.

With 8.5 million people renting, and spending on average 41% of their incomes on housing costs, the statistics are bound to fuel speculation about tenants’ renting affordability.

 

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this could add fuel to the inflation warnings we're having - apparently supermarket shopping went up 2% in April too.

 

Edited by Si1
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We got a reduced rate on our rent, about 7% from what they were asking.

However, similar, but worse (fewer bathrooms, smaller rooms etc) are coming on for about 10-15% more. It's quite bizarre.

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As it says in your original post:

"The ONS data covers a period from April 1st 2019 to 31st March 2020."

So conveniently just missing the lockdown, peak pandemic and job losses. But hey, a positive headline is a positive headline if you can spin it right, am I right?


P.s. this  was already discussed on another thread:

  15 hours ago, highcontrast said:

How convenient. Use the figures from the period just before lockdown/pandemic fully kicked in and paint a picture that everything is rosy.

The cheek of it has to be admired no?

"It makes me suspect that penetration of buy to let landlordism is even more insidious that I thought already.

Do you think workers at the ONS have joined the rentier classes or do they get their orders from higher up the food chain?

As you say, they must have more up to date figures than March, by now two months worth surely."

 

 

P.s. How is the portfolio doing @richmondtw ?

Edited by highcontrast
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39 minutes ago, MattW said:

Rents in my city seem to be quite hefty since I last checked. £800 pcm for a modernised 2/3 bedroomed house. Yikes!

maybe estate agents a and BTL scumbags will see much unpleasantness when the poor crack

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4 hours ago, MattW said:

Rents in my city seem to be quite hefty since I last checked. £800 pcm for a modernised 2/3 bedroomed house. Yikes!

£800 wouldn't be hard to find if people were paid decent money that properly reflected value they add to the organisation instead of nasty minded people taking advantage of the chronic over supply of labour to route the lion's share of profits (or budget if public sector) to its executive.

I've felt for a long time that people perceive many things, that are historically priced correctly or even cheaply, as "expensive" because they are not being paid fairly.

Edited by hotblack42
grama
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The problem is the council rate for the housing allowance on universal credit. It's set to 80% of market rent or something like that and soaks up the problem. Round my way - the house element is nearly £800 p/m for a 3 bed. That's most of the way to the real market rent. This is a feedback loop because the housing allowance tracks the private rents. Landlords can keep increasing it and the state keeps picking up the cost, up until the point that earners without top ups can't pay no more. We must be very near that point.

UC is, despite popular assumptions - quite generous. It compares very well to the old tax credits system except for three things.

* If you or your kids have a disability you get a lot less than before.

* Your savings are means tested (so don't ever have more than 6k) and taper the UC

* Don't earn money above your work allowance, when the amount you get is slashed by 63p (plus tax) for every extra £1 you earn with another taper. *Cough salary sacrifice into pension*

Basically high rents are only a problem for those who actually have to pay for it out of their own income.

Dyor - I could be wrong.

Edited by Frugal Git
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3 hours ago, hotblack42 said:

£800 wouldn't be hard to find if people were paid decent money that properly reflected value they add to the organisation instead of nasty minded people taking advantage of the chronic over supply of labour to route the lion's share of profits (or budget if public sector) to its executive.

I've felt for a long time that people perceive many things, that are historically priced correctly or even cheaply, as "expensive" because they are not being paid fairly.

Indeed. 

Back 30 years ago, my dad bought our second PC. It was a mid spec for the time and it cost £1800. He earnt 22k p/a at the time, but had long since paid off his mortgage. That PC was totally out of date in 2.5 years (when doom 2 and Ultima underworld 2 came out). Worked out to be a good investment because...

....Today, largely thanks to that machine and him, I earn a significant multiple of that, but thanks to housing, I can only *dream* of spending £1800 in devalued 2020 sterling on an insanely powerful machine (that I'd make damn good use of) that'll probably last 8 years easy (except for the GPU). The PC is cheap. Justifying the cost is very difficult when you know you need to pay a 400k debt for the bricks.

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5 hours ago, Frugal Git said:

The problem is the council rate for the housing allowance on universal credit. It's set to 80% of market rent or something like that and soaks up the problem. Round my way - the house element is nearly £800 p/m for a 3 bed. That's most of the way to the real market rent. This is a feedback loop because the housing allowance tracks the private rents. Landlords can keep increasing it and the state keeps picking up the cost, up until the point that earners without top ups can't pay no more. We must be very near that point.

UC is, despite popular assumptions - quite generous. It compares very well to the old tax credits system except for three things.

* If you or your kids have a disability you get a lot less than before.

* Your savings are means tested (so don't ever have more than 6k) and taper the UC

* Don't earn money above your work allowance, when the amount you get is slashed by 63p (plus tax) for every extra £1 you earn with another taper. *Cough salary sacrifice into pension*

Basically high rents are only a problem for those who actually have to pay for it out of their own income.

Dyor - I could be wrong.

You are exactly right with this.  It takes away the incentive to work.   And save.  I might as well sit on my bum all day and be financially better off.

I know many people who have lost their job and having to use their saved house deposit to live on before they can claim UC..

Because I have saved and not spent my whole life, if I loose my job, I’m on my own.

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On 22/06/2020 at 01:26, Frugal Git said:

* Don't earn money above your work allowance, when the amount you get is slashed by 63p (plus tax) for every extra £1 you earn with another taper. *Cough salary sacrifice into pension*

I was looking recently to find the maximum salary possible for UC because i was considering SS everything above this to get me below the threshold once i purchase a house and all my savings are spent. It also seems UC gives more if there are no housing costs to meet, therefore being an OO perversely seems to be more lucrative. 

I couldn't find this threshold for UC except some blurb about agreeing to work 35 hours per week at the living wage.

Therefore, is it true that £8.72 x 35 x 52 = £15,870 PA max salary for UC?  What if your salary + employer contribution is above the £40,000 yearly pension limit? Worth saying i will have 2 children by the time i do this. 

I've never applied for benefits before and used to consider it wrong to do so if i'm working, however after 15 years of paying government-subsidised LLs i no longer have any quarms with doing this. 

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On 22/06/2020 at 07:27, xxxx said:

You are exactly right with this.  It takes away the incentive to work.   And save.  I might as well sit on my bum all day and be financially better off.

I know many people who have lost their job and having to use their saved house deposit to live on before they can claim UC..

Because I have saved and not spent my whole life, if I loose my job, I’m on my own.

That`s the way it is be responsible and you are penalized for doing so, you need to be really minted to take advantage have just a little bit and it goes against you.

its taken me 3 months to convince the jobcentre to offer me NIC class 1 credits so i can now claim JSA which will be back dated to march. so hopefully a grand will be winging its way to me me soon.  should pay for a holiday somewhere later in the year, ties in nicely with the £100 avios just dumped into my BA account for free. ?  ordinarily i would not bother claiming as you need to visit the JC but none of that needed for the moment hopefully i get the contribution based 2k out of them. 

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Its not really an all time high. The ONS says "not been higher". The "all time high" is spin added by the OP.

If you look at the previous release: https://www.ons.gov.uk/peoplepopulationandcommunity/housing/bulletins/privaterentalmarketsummarystatisticsinengland/october2018toseptember2019

what the data says is "rents were unchanged in the period up to march this year.".

Edited by gp_
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9 hours ago, sammersmith said:

I was looking recently to find the maximum salary possible for UC because i was considering SS everything above this to get me below the threshold once i purchase a house and all my savings are spent. It also seems UC gives more if there are no housing costs to meet, therefore being an OO perversely seems to be more lucrative. 

I couldn't find this threshold for UC except some blurb about agreeing to work 35 hours per week at the living wage.

Therefore, is it true that £8.72 x 35 x 52 = £15,870 PA max salary for UC?  What if your salary + employer contribution is above the £40,000 yearly pension limit? Worth saying i will have 2 children by the time i do this. 

I've never applied for benefits before and used to consider it wrong to do so if i'm working, however after 15 years of paying government-subsidised LLs i no longer have any quarms with doing this. 

I believe it's better to be a renter than an OO, because the housing element is potentially so large, but I could be wrong. If you have a boatload of savings - over say, 50k, you are going to have a job to get rid of them without deprivation of capital rules unless it's a house purchase so that might be an irrelevance already in your case.

But you have the right idea, yes. 

For UC different circumstances mean different 'minimum income floors'. So if you have kids of certain ages and a partner, the minimum household income they expect you and your partner to bring in is different to a couple without kids, or a single person. Worth working out what that minimum income floor is for your situation.

After that, yes, it's a matter of salary sacrificing down to that minimum income floor. 

Whether you can do that depends on your salary, but, as it's tapered, you could still end up with some UC if you go up to the 40k limit even if you earn what is considered a high salary to begin with. A partial payment easily can be payable to people earning 40k (after sacrifice) if they have kids and rent - the max you can get is again circumstance dependent but it can be over £1300 a month - the benefit cap I think is what sets the absolute upper bound 

But yeah, the lower you can go the better because it can mean extraordinarily cheap pension contributions (think 25p from net to get £1.138 into pension), or a horrible marginal tax rate if you don't.

Edited by Frugal Git
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On 22/06/2020 at 07:27, xxxx said:

You are exactly right with this.  It takes away the incentive to work.   And save.  I might as well sit on my bum all day and be financially better off.

I know many people who have lost their job and having to use their saved house deposit to live on before they can claim UC..

Because I have saved and not spent my whole life, if I loose my job, I’m on my own.

Yes it's sickening (that savings are means tested for benefits especially unemployment, but to an extent UC too). It's a trap that means people with instability have no incentive to save. 

Once you're on the UC gravy train, why would you even try to get off unless you can earn 85k+ - it's pointless.

If you've paid your NI contributions, you should get the support.

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6 hours ago, longgone said:

its taken me 3 months to convince the jobcentre to offer me NIC class 1 credits so i can now claim JSA which will be back dated to march. so hopefully a grand will be winging its way to me me soon.

Do you also qualify for HB? If so they will pay your rent up to the local housing rate I think.   I don't know its all been changed now and it's under UC I believe.  UC is the standard benefit now and covers everything.

 

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6 minutes ago, Frugal Git said:

If you've paid your NI contributions, you should get the support.

They're really funny about NICs for contributory based benefits. It can take months for them to figure it all out.

I can only imagine it being worse now with MILLIONS applying...

 

Edited by Warlord
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15 hours ago, Warlord said:

Do you also qualify for HB? If so they will pay your rent up to the local housing rate I think.   I don't know its all been changed now and it's under UC I believe.  UC is the standard benefit now and covers everything.

 

no i moved back home years back when i sold my flat.  actually i`m not sure if i will get any JSA now as they do not state how much NIC contributions you need they only approved them from when i made the JSA claim in march.  i was reading it as if ANY nic has been paid you will get it but not entirely sure. 

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1 hour ago, longgone said:

no i moved back home years back when i sold my flat.  actually i`m not sure if i will get any JSA now as they do not state how much NIC contributions you need they only approved them from when i made the JSA claim in march.  i was reading it as if ANY nic has been paid you will get it but not entirely sure. 

I think you can contact Inland Revenue for a statement of NICs. If you paid in you should  definitely get it ... that's the whole point isn't it? Bureaucrats !

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On 24/06/2020 at 12:04, Warlord said:

I think you can contact Inland Revenue for a statement of NICs. If you paid in you should  definitely get it ... that's the whole point isn't it? Bureaucrats !

trouble is they do not state how much NIC class 1 you need whether its by working or by credit. 

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On 24/06/2020 at 12:04, Warlord said:

I think you can contact Inland Revenue for a statement of NICs. If you paid in you should  definitely get it ... that's the whole point isn't it? Bureaucrats !

well they say they are paying nic credits from march 2020 but use years 18 and 19 to calculate your eligibility for jsa so once again nothing for me. 

50k loan though a defunct made up company no problem here you go sir. 

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  • 415 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%



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