fellow Posted July 10, 2023 Share Posted July 10, 2023 Mortgage borrowers race to take in lodgers as interest rates rise https://www.telegraph.co.uk/business/2023/07/09/mortgage-borrowers-race-lodgers-interest-rates-rise/ Quote Stretched mortgage borrowers are racing to take in lodgers in an attempt to help cover their bills. The number of adverts for lodgers on listings website SpareRoom was nearly a fifth higher in the three months to June than a year earlier, the business said. Matt Hutchinson, communications director at the company, said that much like after the financial crisis, squeezed homeowners were starting to look at empty bedrooms as a source of income. Mr Hutchinson said: “We saw a real sort of drop in people taking lodgers over Covid. But the numbers have started picking up again now. “With people struggling and interest rates rising it’s something we think is going to really take off throughout the course of this year.” Quote Link to comment Share on other sites More sharing options...
Roman Roady Posted July 10, 2023 Share Posted July 10, 2023 So much for interest rate rises leading to increased rent’s, this will increase supply and choice. Quote Link to comment Share on other sites More sharing options...
fellow Posted July 10, 2023 Author Share Posted July 10, 2023 52 minutes ago, Roman Roady said: So much for interest rate rises leading to increased rent’s, this will increase supply and choice. Along with people moving back in with their parents,(which is effectively the same as lodging). Quote Link to comment Share on other sites More sharing options...
70PC Posted July 10, 2023 Share Posted July 10, 2023 Rightmove is also full of properties with no furniture waiting for people to move in. 4 minutes ago, fellow said: Along with people moving back in with their parents,(which is effectively the same as lodging). Quote Link to comment Share on other sites More sharing options...
Housepricecrash91 Posted July 10, 2023 Share Posted July 10, 2023 Yeah makes sense If it means keeping your head above water and you have a spare bedroom. I think you get a tax free allowance for renting a spare room too. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted July 10, 2023 Share Posted July 10, 2023 1 hour ago, Roman Roady said: So much for interest rate rises leading to increased rent’s, this will increase supply and choice. Yep, if we go back to "Lodger World" (when did that peak, the 1970`s?) BTL will be absolutely hammered. Not the best thing having a lodger unless you really know and get on with them, but people will do it to avoid losing the house. Quote Link to comment Share on other sites More sharing options...
Si1 Posted July 10, 2023 Share Posted July 10, 2023 But but housing supply is inelastic Quote Link to comment Share on other sites More sharing options...
Blobsy Posted July 10, 2023 Share Posted July 10, 2023 This was always on the cards. A spike in rents then collapse as people and their circumstances adjust. Quote Link to comment Share on other sites More sharing options...
fellow Posted July 10, 2023 Author Share Posted July 10, 2023 5 hours ago, 70PC said: Rightmove is also full of properties with no furniture waiting for people to move in. Many landlords are trying to sell when their tenant vacates rather than looking for another tenant, which is temporarily pushing up rents. Rents should fall as these unoccupied homes sell and / or get put back on the rental market. Quote Link to comment Share on other sites More sharing options...
24gray24 Posted July 10, 2023 Share Posted July 10, 2023 The rush for the exits is being stymied by unmortgageable ground rent provisions. A deed of variation takes 4 months and costs sellers thousands. The sellers are trying to sell at peak prices, without fixing it (and paying thousands). There will come a Minsk moment for these stalled sales. Quote Link to comment Share on other sites More sharing options...
TenYearToGetMyMoneyBack Posted July 11, 2023 Share Posted July 11, 2023 17 hours ago, dances with sheeple said: Yep, if we go back to "Lodger World" (when did that peak, the 1970`s?) BTL will be absolutely hammered. Not the best thing having a lodger unless you really know and get on with them, but people will do it to avoid losing the house. It was pretty big in the 1980s. My live in Landlord couldn't get a mortgage because he was a self employed musician so bought his house on a ten year bank loan. Four lodgers paid over 80% of that for him. A colleague had several lodgers and what was supposed to be the dining room as his bedroom). something that has changed since the 1980s, which will increase supply is that back then there was very little purpose built student accommodation. Recently Bristol has built so much it makes you wonder how they fill it (although the fact that everyone between the age of 18 and 24 with an IQ over 80 has to go to Uni these days might explain it). Quote Link to comment Share on other sites More sharing options...
Barry78 Posted July 11, 2023 Share Posted July 11, 2023 I am mortgage free as of last month, part of the reason I am mortgage free is that I utilised the rent a room scheme when I first got my property in 2011, back then the tax free amount was only £3,650 I think it is more now but I feel like the govt should increase this threshold further to around £900 a month (maybe higher for London). I never rented a whole place whilst saving up a deposit but would find the best place I could for the amount I wanted to spend. Not sure how the borrow to let gang would feel about rent a room getting bigger tax relief though. Quote Link to comment Share on other sites More sharing options...
Nabby81 Posted July 11, 2023 Share Posted July 11, 2023 I'm a lodger , works for me as the rental prices where I am are insane for what you get.It has some issues , the landlady can be noisy at times but for the most part it works for both of us .She orginally took in a lodger to mitigate energy bills. As well as cheaper than renting alone , its better than the other option ..HMO. Quote Link to comment Share on other sites More sharing options...
PeanutButter Posted July 11, 2023 Share Posted July 11, 2023 (edited) My dad was a lodger Mon-Fri in the 80s. We only saw him on weekends when he drove back. The landlady he lived with would try and feed him large piles of potatoes. Poor old Dad, he put on a brave face. Edited July 11, 2023 by PeanutButter Quote Link to comment Share on other sites More sharing options...
winkie Posted July 11, 2023 Share Posted July 11, 2023 19 hours ago, Blobsy said: This was always on the cards. A spike in rents then collapse as people and their circumstances adjust. People are very good at doing that, they are not going to give away their hard earned wages......they might give higher rents as a reason why need a better pay rise, get the pay rise and hand notice in to landlord.....no longer required. Quote Link to comment Share on other sites More sharing options...
Housepricecrash91 Posted July 11, 2023 Share Posted July 11, 2023 27 minutes ago, Nabby81 said: I'm a lodger , works for me as the rental prices where I am are insane for what you get.It has some issues , the landlady can be noisy at times but for the most part it works for both of us .She orginally took in a lodger to mitigate energy bills. As well as cheaper than renting alone , its better than the other option ..HMO. Yeah, At a glance, renting a spare room in a 3-bed house in my area is £700-£800 vs spending £1200+ rent for a one bed flat above kebab shops and other takeaways..... If I was a single bloke, It would be a no brainer.. Quote Link to comment Share on other sites More sharing options...
winkie Posted July 11, 2023 Share Posted July 11, 2023 10 minutes ago, PeanutButter said: My dad was a lodger Mon-Fri in the 80s. We only saw him on weekends when he drove back. The landlady he lived with would try and feed him large piles of potatoes. Poor old Dad, he put on a brave face. More like Tuesday to Thursday these days, hybrid working....walk or cycle to work......drive early Tuesday morning, drive home Thursday evening or Friday morning......~£100 a week parking included.....bit extra with evening meal....£500 or so extra a month must go to helping with extra mortgage payments...... Quote Link to comment Share on other sites More sharing options...
Housepricecrash91 Posted July 11, 2023 Share Posted July 11, 2023 6 minutes ago, winkie said: People are very good at doing that, they are not going to give away their hard earned wages......they might give higher rents as a reason why need a better pay rise, get the pay rise and hand notice in to landlord.....no longer required. Agreed... asking for 50-60% of a persons/households earnings in rent just isn't sustainable. I certainly couldn't go to work knowing that a large proportion of my money is going on paying off someone else's mortgage. I guess LLs can always find foreigners who are happy to live together and pay the silly rents each month.... as the rent divided by 10 people may only cost the tenants £200 per month per head. That seems to be popular at the moment. Quote Link to comment Share on other sites More sharing options...
winkie Posted July 11, 2023 Share Posted July 11, 2023 Just a thought, how many do continue to rent knowing at some point in their later life they would be left an inheritance that will provide them with their forever owned home......their families property will become their own.......this must be a new phenomena, never before have so many been dependant on the gift/wealth of others? Quote Link to comment Share on other sites More sharing options...
PeanutButter Posted July 11, 2023 Share Posted July 11, 2023 15 minutes ago, winkie said: More like Tuesday to Thursday these days, hybrid working....walk or cycle to work......drive early Tuesday morning, drive home Thursday evening or Friday morning......~£100 a week parking included.....bit extra with evening meal....£500 or so extra a month must go to helping with extra mortgage payments...... Can't hybrid work teaching. Quote Link to comment Share on other sites More sharing options...
winkie Posted July 11, 2023 Share Posted July 11, 2023 7 minutes ago, PeanutButter said: Can't hybrid work teaching. Depends .......not if teaching in regular schools. Many studies/learning can be done online now, or part and part.....works well for mature students with other responsibilities. Quote Link to comment Share on other sites More sharing options...
fellow Posted July 11, 2023 Author Share Posted July 11, 2023 1 hour ago, PeanutButter said: My dad was a lodger Mon-Fri in the 80s. We only saw him on weekends when he drove back. The landlady he lived with would try and feed him large piles of potatoes. Poor old Dad, he put on a brave face. He couldn't feed himself? Quote Link to comment Share on other sites More sharing options...
PeanutButter Posted July 11, 2023 Share Posted July 11, 2023 23 minutes ago, fellow said: He couldn't feed himself? Let me organise a seance and we can ask him. Quote Link to comment Share on other sites More sharing options...
fellow Posted July 11, 2023 Author Share Posted July 11, 2023 38 minutes ago, PeanutButter said: Let me organise a seance and we can ask him. Why mention it then? Quote Link to comment Share on other sites More sharing options...
Nabby81 Posted July 11, 2023 Share Posted July 11, 2023 2 hours ago, Housepricecrash91 said: Yeah, At a glance, renting a spare room in a 3-bed house in my area is £700-£800 vs spending £1200+ rent for a one bed flat above kebab shops and other takeaways..... If I was a single bloke, It would be a no brainer.. 550 to rent a room inc bills or 900-1000 for a one bed flat plus bills...No brainer Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.