Jump to content
House Price Crash Forum
Time to raise the rents.

No Thread On Todays Front Page Telegrah Story?

Recommended Posts

http://portal.telegraph.co.uk/news/main.jh...xportaltop.html

Why would any self respecting bear post a story about rising rents?

Actually this has been discussed already in some detail.

And as many people have pointed out, raised costs for landlords do not necessarily mean raised rents. The alternative is squeezed profit margins for landlords.

Edit: In fact, the costs for landlords have already increased dramatically, in that the purchase prices of houses have risen considerably. Hence if increased costs for landlords mean increased rents, we should already have seen rents going up considerably. If rents have not risen considerably, what does this mean?

Billy Shears

Edited by BillyShears

Share this post


Link to post
Share on other sites

I think we have tackled this one already TTRTT. If rent increases out of peoples budget then they will not rent the house. Affordability is already a huge problem for most renters. People will just go and live with parents or live together til things cool off.

without renters, your void periods will look nice ;-))

Hence more BTl'ers to the wall

More houses on market

Prices decrease as more people struggle to sell the weight around their neck

etc etc

Share this post


Link to post
Share on other sites

Yes - but this licensing regime only applies to housing of multiple occupation (e.g. mainly for students) and refers solely to what one council (Wandsworth - the tightest and most miserly council in the whole of the UK) is proposing to charge!

Apart from student properties I doubt it will have an effect on the vast majority of rental properties outside inner London.

Share this post


Link to post
Share on other sites

You can count on NuLabour taxing anything they can--the BTL craze is about to come face to face with a reality check--there is a steep price to pay for any form of entrepreneurship in this Country. Labour have never favoured landlords and never will--the screws are only just tightening. IMHO its time to sell BTLs and invest elsewhere--seriously.

Share this post


Link to post
Share on other sites

Why would any self respecting bear post a story about rising rents?

Hrm, the same way agents say that the introduction of HIPs will mean "prices will EXPLODE!", obviously a very bad thing if you're an agent, exactly why they want them scrapped.

Share this post


Link to post
Share on other sites

http://portal.telegraph.co.uk/news/main.jh...xportaltop.html

Why would any self respecting bear post a story about rising rents?

TTRTR, you've got to be the daftest person ever.

If landlords were able to raise rents whenever their costs rose, why wouldn't they raise them anyway (even when they didn't rise)??

When the costs of running my business rise, I can't just pass them onto my customers - neither can landlords.

Share this post


Link to post
Share on other sites

TTRTR, you've got to be the daftest person ever.

If landlords were able to raise rents whenever their costs rose, why wouldn't they raise them anyway (even when they didn't rise)??

Indeed, if they can just raise rents on a whim why are some sitting on 3.5% yields? Obviously they just need to double the rents, so why are they so stupid?

Share this post


Link to post
Share on other sites

http://portal.telegraph.co.uk/news/main.jh...xportaltop.html

Why would any self respecting bear post a story about rising rents?

TTRTR I have to say I'm glad we have you on this site.

It's actually a pity that we don't have more bulls who can post at least a reasonably sensible argument, it gives this site more credibility.

However I do find your assertion that landlords can simply raise rents with their costs quite amusing.

If you study basic economics, which I'm sure you must have, being an accountant and all, you will know that for a given service, a rise in price will result in decreased demand, unless there is a corresponding fall in supply.

To test this theory, I would suggest you double all your rents next month, and report back on the reaction of your tenants.

Who knows, you may just prove me wrong.

And make a heap of money in the process.

As for the student population, I reckon they'll just decide to stay at home with the folks if they can't afford to rent.

Edited by BandWagon

Share this post


Link to post
Share on other sites

You can count on NuLabour taxing anything they can--the BTL craze is about to come face to face with a reality check--there is a steep price to pay for any form of entrepreneurship in this Country. Labour have never favoured landlords and never will--the screws are only just tightening. IMHO its time to sell BTLs and invest elsewhere--seriously.

Let's not confuse the BTL brigade with entrepreneurship. Having the good fortune to be a home owner before prices rocketed, and consequently having the equity to build a property portfolio (I can barely type those two p words without my blood boiling) is no more entrpreneurial than buying a winning lottery ticket. I had the misfortune tonight to be seated next to two of these so-called entreprenuers in the local pub, dribbling over their portfolios and smugly congratulating themselves for their original shrewd investments. I hope they all get shafted and lose everything, including their original home. That'll teach 'em.

Share this post


Link to post
Share on other sites

i've just realised that TTRTR is a figment of the webmaster's imagination, put here purely to encourage us to think through the economics of BTL and realise how pathetic it is.

I say this safe in the knowledge that you are purely fictitious, and therefore incapable of being offended. :lol:

Share this post


Link to post
Share on other sites

Landlord : "Time to Raise the Rents"

Tenant : "Time to move somewhere cheaper."

Landlord : "Sorry, if you feel that way, we can keep the rent where it is."

I've been looking for a new place to rent, and I can tell you the rental market is very weak.

This is in prime SW London, landlord's are now taking offers of 10 to 15% off their asking prices.

Yet another sign of the slump in consumer demand...

Share this post


Link to post
Share on other sites

i've just realised that TTRTR is a figment of the webmaster's imagination, put here purely to encourage us to think through the economics of BTL and realise how pathetic it is.

I say this safe in the knowledge that you are purely fictitious, and therefore incapable of being offended. :lol:

I've always thought that?

Why?

TTRTR is much too polite.

After all the abuse he has received (admittedly greatly reduced in recent times because we all secretly love him) he continues to post rational and constructive arguments. After all the abuse and ridicule how could any ordinary person continue to post.

Unless of course, he is a supreme being! Mmmmmm!

kisses3.gif

post-67-1142119506.gif

Share this post


Link to post
Share on other sites

Not if you catch him right, I've got him a couple of times, there was something of the Van Hoogstraten about him. :ph34r:

If the owners of the site get done over tonight we know who to blame :lol:

Share this post


Link to post
Share on other sites

i've just realised that TTRTR is a figment of the webmaster's imagination

This is a bit like the moment I stopped believing in Santa Clause :unsure:

Share this post


Link to post
Share on other sites

http://portal.telegraph.co.uk/news/main.jh...xportaltop.html

Why would any self respecting bear post a story about rising rents?

There may well be thoughts of or even an attempt to pass it on to the tennants, though with the level of competition in the rental markets these days which are 'AWASH' with amateur landlords, I think you will concur that the competition for a tennant will far outweigh the temptation to raise the rents? As long as the tennant is 'contributing' at least half of your mortgage payment, thats enough isn't it TTRTR? Because they're in for the 'Long Time' after all?

WAAAAAaaaaaAAAARRRGHHH HAAAAAARRRR HA HAA HAAA HAAAAAAAAAAAAAAAAAAAAAAAAAAA!!! :lol:

Share this post


Link to post
Share on other sites

TTRTR I have to say I'm glad we have you on this site.

It's actually a pity that we don't have more bulls who can post at least a reasonably sensible argument, it gives this site more credibility.

However I do find your assertion that landlords can simply raise rents with their costs quite amusing.

If you study basic economics, which I'm sure you must have, being an accountant and all, you will know that for a given service, a rise in price will result in decreased demand, unless there is a corresponding fall in supply.

To test this theory, I would suggest you double all your rents next month, and report back on the reaction of your tenants.

Who knows, you may just prove me wrong.

And make a heap of money in the process.

As for the student population, I reckon they'll just decide to stay at home with the folks if they can't afford to rent.

Very good point. Many overlook the elasticity of demand in the housing market and assume that demand is purely a function of demographics. This is not the case.

As prices rise demand contracts for several reasons:

More people need to cohabit. This is driven by two sides firstly purchasers need to rent a room to meet increased costs and tennants need to rent a cheap room in order to save deposit.

Many stay at home during early years of work and study.

People postpone families.

People accept smaller dwellings.

Less people own second homes.

And so on.........

Share this post


Link to post
Share on other sites

There may well be thoughts of or even an attempt to pass it on to the tennants, though with the level of competition in the rental markets these days which are 'AWASH' with amateur landlords, I think you will concur that the competition for a tennant will far outweigh the temptation to raise the rents? As long as the tennant is 'contributing' at least half of your mortgage payment, thats enough isn't it TTRTR? Because they're in for the 'Long Time' after all?

WAAAAAaaaaaAAAARRRGHHH HAAAAAARRRR HA HAA HAAA HAAAAAAAAAAAAAAAAAAAAAAAAAAA!!! :lol:

I suspect that many landlords will be able to pass on a small increase to sitting tenants. But when it comes to attracting new tenants, things will revert to market forces. From no rent to some rent is a big difference, especially when there is a mortgage to cover and no capital appreciation.

Billy Shears

Share this post


Link to post
Share on other sites

http://portal.telegraph.co.uk/news/main.jh...xportaltop.html

Why would any self respecting bear post a story about rising rents?

Because its some VI yap about what they think (hope!) will happen rather than what has been happening.

It is in effect irrelevant, as so many of the VI articles truly are.

What is really typical about this site is that they make considerable effort to lucidly dissect your bogus arguments.

To no avail mind, but its not really you they have to convince. Its the increasing number of punters visiting this site for

accurate information about the state of the housing market in this country.

Edited by geneer

Share this post


Link to post
Share on other sites

Very good point. Many overlook the elasticity of demand in the housing market and assume that demand is purely a function of demographics. This is not the case.

As prices rise demand contracts for several reasons:

More people need to cohabit. This is driven by two sides firstly purchasers need to rent a room to meet increased costs and tennants need to rent a cheap room in order to save deposit.

On the same point. Just over a year ago my girlfriend and I were each living in our own 2 bed flats. We subsequently downsized to a 1 bed flat. This was done simply to allow us to save more money (we both STR'ed)

So we reduced our demand for accomodation by 75%. This was done without any financial pressure.

We are moving again, and I have been watching the rental market. In prime parts of London the rental market is very soft, landlord's will take 15% off asking prices.

I know people now paying less on rent than 5 years ago.

And with this falling demand we will see increased supply. People who are short of cash will rent out rooms that before stood empty. People renting double rooms may opt for singles. Or stay at home with the folks.

I believe this is the start of the recession.

Unless the BOE can reduce rates, this economy is in trouble.

Edited by BandWagon

Share this post


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.

  • 301 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.