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Realistbear

Rents Rise 6.39% In Last Q According To A V I

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http://www.mortgageintroducer.com/news/new...p?unqueid=16824

Paragon reports BTL bounce

Paragon Mortgages Buy-to-Let (BTL) Index has revealed a buoyant market, with yields, property values and rents all rising.
February has seen increases in key indicators with yields, property values and rents all rising.
Investors have seen rents rise by 6.39% over the last three months
increasing from £9,954 in November to £10,590 in February.
John Heron commented: “The number of households in the UK is growing steadily.
Many of these new households will not be able afford to buy their own home and will be reliant on rented accommodation
. This reliance is likely to increase as house prices continue to rise, and buyers (particularly first time buyers) find it harder to get on the property ladder. This will ultimately lead to an increase in the demand for rented accommodation which is good news for the buy-to-let market.”

They are factoring in that FTBs are now no longer "Buyers" but permanent renters. As BTL has priced out many would-be homeowners they believe rents will rise to keep the Landlord classes wealthy. The only problem with this scenario is that it relies on the renter class, consisting mainly of younger people on professional salaries, to be able to pay the rent. As house prices continue to rise out of reach of the younger people rents will have to rise faster than salaries--which is not going to happen anytime soon.

BTLers are relying on unaffordability to keep their cash flow going. As they rely on a negative (unaffordability) to keep going the HPC is their worst nightmare.

BTW--would a Labour government normally be proud to have made John Heron's statement possible?

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I predict 10% in the next 12 to 18 months as a result of HMO licensing.

10% rise for those in HMO housing perhaps but that wont effect your average renters rent.

If my landlady wants a rise when the lease is up then i will agree to 2%. If she doesnt accept then she can give me 2 months to get out.

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I predict 10% in the next 12 to 18 months as a result of HMO licensing.

I predict more people will go back and live with mum and dad / relatives

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How does that work then? I rent 2 places and neither have gone up at all in the past year. Actually i havnt had any rent rises ever.

Probably when tenants move out, the property is then marketed at a new, higher rent.

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IMHO rent controls are inevitable as the government will have to step in. Gordon has effectively removed the possibility of home ownership from many and he will be eventually pressured to avoid mass homelessness by doing what Labour government have always done best--regulate.

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I predict my rent will be the same this time next year. I also predict that if my rent was increased by 10% I'd send an email around at work asking who wanted a lodger to help pay their mortgage, and be living in someone's house at half my current rent within a month.

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10% rise for those in HMO housing perhaps but that wont effect your average renters rent.

If my landlady wants a rise when the lease is up then i will agree to 2%. If she doesnt accept then she can give me 2 months to get out.

You lot are just in denial. When your landlady is being harrassed by ex HMO tenants looking for a place, it'l either be you paying more, or them.

It all feeds up the chain - but I suspect you'll ignore that as it wouldn't be right to accept that anything could affect you.

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You lot are just in denial.

No, you're the one in denial. You see, tenants have lots of options, unlike overindebted BTL amateurs... and when those who overextended themselves are forced to sell up, more and more people will be able to buy rather than rent.

Edited by MarkG

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You lot are just in denial. When your landlady is being harrassed by ex HMO tenants looking for a place, it'l either be you paying more, or them.

It all feeds up the chain - but I suspect you'll ignore that as it wouldn't be right to accept that anything could affect you.

I am afraid you may be right. We have a new style of government in power that has made a lot of people rich on paper and in order to perpetuate what they have created they must feed their backers with higher rents and rewards for their investment. Rents must continue to ratchet up until people are squeezed into sub-standard living conditions (if they are not there already) to where they become more submissive--knowing that their alternative is the street or government work houses. A true "Miracle Econmy" at work we mgith say?

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IMHO rent controls are inevitable as the government will have to step in. Gordon has effectively removed the possibility of home ownership from many and he will be eventually pressured to avoid mass homelessness by doing what Labour government have always done best--regulate.

I think this time that the Tories will ride to the rescue before that comes about.

Edited by Time to raise the rents.

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You lot are just in denial. When your landlady is being harrassed by ex HMO tenants looking for a place, it'l either be you paying more, or them.

It all feeds up the chain - but I suspect you'll ignore that as it wouldn't be right to accept that anything could affect you.

My lease is up for renewal in November in my Chiswick studio. Do you want to place a bet as to how much extra I will be asked to pay? I will have previous and new lease as proof.

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25% annualised growth in rents? Not a chance, in my area it looks like rents have been static for at least the last year. Plenty of supply on the market, doesn't seem to be too much demand as some of the things I've looked at recently seem to be hanging around.

Is there a link to the report available? Sounds like a typical bit of VI spin to me. Edit: that'll be the one in the first post.

Edit 2: http://www.paragon-mortgages.co.uk/mortgag...erence.nsf/news

This looks like the original press releases, as you can see the article is just a cut and paste.

Edited by Young Goat

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My lease is up for renewal in November in my Chiswick studio. Do you want to place a bet as to how much extra I will be asked to pay? I will have previous and new lease as proof.

Why would I want to bet against 1 person? I'm betting enough on the market already, 3 + million pounds, so I'm reasonably confident that I'll win.

Remember - heads I win, tails you lose.

Edited in: A studio flat is the perfect candidate for an ex HMO tenant BTW.

Edited by Time to raise the rents.

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I am afraid you may be right. We have a new style of government in power that has made a lot of people rich on paper and in order to perpetuate what they have created they must feed their backers with higher rents and rewards for their investment. Rents must continue to ratchet up until people are squeezed into sub-standard living conditions (if they are not there already) to where they become more submissive--knowing that their alternative is the street or government work houses. A true "Miracle Econmy" at work we mgith say?

Bring it on! Then as Non Ftb'r said, there will be a riot.

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My lease is up for renewal in November in my Chiswick studio. Do you want to place a bet as to how much extra I will be asked to pay? I will have previous and new lease as proof.

My lease just expired and after mentioning to my nice LL that the council tax was now 1900 pounds the rent increase was: 0

There is a flood of properties to rent in my area and the prices appear to be slightly lower than last year when I was looking.

Although my previous posts on this thread were a little tongue in cheek--the reality is that rents are constrained by affordability because renters can't borrow to pay rent unlike homeowners who can borrow to pay rent to the bank.

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Why would I want to bet against 1 person? I'm betting enough on the market already, 3 + million pounds, so I'm reasonably confident that I'll win.

Remember - heads I win, tails you lose.

If you'd put your 3 + million in gold, you'd be retired by now.

Or are you actually 3 + million in debt in which case you havnt bet 3 + million as you can just go bankrupt and walk away. I suspect that this is the case.

My lease just expired and after mentioning to my nice LL that the council tax was now 1900 pounds the rent increase was: 0

There is a flood of properties to rent in my area and the prices appear to be slightly lower than last year when I was looking.

Although my previous posts on this thread were a little tongue in cheek--the reality is that rents are constrained by affordability because renters can't borrow to pay rent unlike homeowners who can borrow to pay rent to the bank.

Yes, and unless you are actually renting HMO housing you're very likely to be asked to pay much of a rise. How could it be justified?

Also TTRTR, I very much doubt if many of the folks in HMO housing are going to be competing to rent complete flats. If I were in HMO I would prefer to pay you your 10% rise rather than have to pay double + twice the council tax for a flat of my own. Either that or move to a cheaper place down the road.

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Guest boredwaiting

Bring it on! Then as Non Ftb'r said, there will be a riot.

What was the last big riot in the uk?

I don't remember us having any 'good' ones - we'll probably take it lying down whatever happens.

Could you imagine people in the uk behaving like the french at the moment? I can't see it.

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What was the last big riot in the uk?

I don't remember us having any 'good' ones - we'll probably take it lying down whatever happens.

Could you imagine people in the uk behaving like the french at the moment? I can't see it.

No not at the moment perhaps, but if things got bad enough.

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Could you imagine people in the uk behaving like the french at the moment? I can't see it.

The productive people in the UK don't riot because they know they have something to lose. Move into TTRTR's glorious future where they're paying 50% of their income in tax and 40% in rent, and what reason would they have not to riot?

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The productive people in the UK don't riot because they know they have something to lose. Move into TTRTR's glorious future where they're paying 50% of their income in tax and 40% in rent, and what reason would they have not to riot?

None.

Hence.

I predict a riot.

Or an HPC.

Most likely: HPC

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I predict 10% in the next 12 to 18 months as a result of HMO licensing.

Will you still be around in 18 months to comment on this? I've just put this prediction into my electronic calendar.

Billy Shears

How does that work then? I rent 2 places and neither have gone up at all in the past year. Actually i havnt had any rent rises ever.

If there was an annual rate of more than 28% rent inflation then I think people would notice rents going up all over the place. Where are they going up that much? Nowhere that I'm familiar with.

Have they gone over to calculating rents based on asking prices or something?

Billy Shears

Edited by BillyShears

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  • 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%



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