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gruffydd

Rental Demand Crashes - Rics

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A few days ago we had a report that landlords had succeeded in pushing up rents. If the numbers in the RICS report are correct, rents are going to slide. Its inevitable. Despite all the spin, there definitely appears to be a glut of property around.

common misconception amounts bears and neither, there IS a shortage of property (to rent or buy). nothing else can explain why rent prices are so hgih, and before you or anyone else disagrees. one has to spend roughly 50% of their take home wage on a mortgage or rent in this country, whereas in America /Germany/ Japan it is closer to 20%

so to anyone out there that says we have an over supply, we have a flood of property to buy or rent. can you explain why rent prices are so high?

oh, this is all thanks to our F****D up planning laws.

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Tenant Demand Falters In Uk - Rics, Boohooo BTLetters

this is propaganda, tenant demand falls .... so where are they going? are they all buying?

it should say something like, people moving back in with family due to ridicules rent and house prices. then it should suggest someone give gordon, blare, every politician a good kicking in the balls since this is a problem that can be fixed so easily. lax planning laws!

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we have a flood of property to buy or rent. can you explain why rent prices are so high?

oh, this is all thanks to our F****D up planning laws.

Rents are high because the cost of property is high. The cost of property is high because of the fractional reserve banking system. If tomorrow it was illegal to borrow more than 1.5x joint earnings, what would houses cost? When there is a genuine shortage of property you get shanty towns, we're a long way from that.

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Exactly, if the average couple could borrow 4million pounds and the repayments were 1k per month, then in a matter of months the average 2/3 bed terrace would be 4 Million Pounds.

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common misconception amounts bears and neither, there IS a shortage of property (to rent or buy). nothing else can explain why rent prices are so hgih, and before you or anyone else disagrees. one has to spend roughly 50% of their take home wage on a mortgage or rent in this country, whereas in America /Germany/ Japan it is closer to 20%

so to anyone out there that says we have an over supply, we have a flood of property to buy or rent. can you explain why rent prices are so high?

oh, this is all thanks to our F****D up planning laws.

Sorry, but where does this 50% figure come from? Me and the missus pay approx. 20% of our take home wage for our rent! IO mortgage on the same property would cost us almost 50% more, but that still wouldn't be anywhere near 50% of our take home wage!

Edited because I keep fogetting you can't insert your own HTML tags on this forum! lol!

Edited by TwentyOneEleven

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Sorry, but where does this 50% figure come from? Me and the missus pay approx. 20% of our take home wage for our rent! IO mortgage on the same property would cost us almost 50% more, but that still wouldn't be anywhere near 50% of our take home wage!

Edited because I keep fogetting you can't insert your own HTML tags on this forum! lol!

Doesn't sound like you are average wage earners!

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Doesn't sound like you are average wage earners!

Yes we are! I think we are quite lucky because we rent privately and got a good deal, but there are many more out there if people bother to look around!

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Yes we are! I think we are quite lucky because we rent privately and got a good deal, but there are many more out there if people bother to look around!

Median av wage is about £450, about £340 after tax, x2 = 680 per week, means you are only paying £550 for rent or thereabouts?

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Tenant Demand Falters In Uk - Rics, Boohooo BTLetters

this is propaganda, tenant demand falls .... so where are they going? are they all buying?

it should say something like, people moving back in with family due to ridicules rent and house prices. then it should suggest someone give gordon, blare, every politician a good kicking in the balls since this is a problem that can be fixed so easily. lax planning laws!

I think you are right - lots of younsgters leaving Uni and going staright back home or going to their local establishment. I wodner this seems ot be kicking in now though - manybe the migrant employment laws have something to with it - many of those jobs may only really have paid a dividend when they didn't involve the tax system!

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Tenant Demand Falters In Uk - Rics, Boohooo BTLetters

this is propaganda, tenant demand falls .... so where are they going? are they all buying?

no. there is a glut of property

renters are 'downsizing'... moving a couple of miles further out, sharing, back to the folks, meaning the expensive 'executive apartments' bought by BTL numpties now stand empty.

Glad I got out when I did!

The fat lady is singing, guys!

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Don't ask me why but I was reading Forbes or something similar the other day and it had a feature on Generation Y and how best to deploy the iPod-listening, flip-flop wearing, good-time generation to best effect in your business. Apparently, Generation Y-ers are much more likely to simply quit a job they don't like as the 'worst that could happen' is they'd just move back in with their Parents, and many of them choose to live at home anyway. Of course, being a big-biz rag the article had an almost New Age 'here's the non-conformist super-generation' assessment of current twenty-somethings.

Add in all the student-debt'n'low-paid job Generation Y-ers and it doesn't look like a ready market to rent 'executive' shoeboxes to.

Edited by CrashedOutAndBurned

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so to anyone out there that says we have an over supply, we have a flood of property to buy or rent. can you explain why rent prices are so high?

Firstly, lets differentiate between an abundance of property and an abundance of available property. There's no shortage of property, it's just that its deliberately being kept vacant by speculators. The glut of properties on rightmove that are chain-free doesn't indicate a shortage of property either.

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common misconception amounts bears and neither, there IS a shortage of property (to rent or buy). nothing else can explain why rent prices are so hgih, and before you or anyone else disagrees. one has to spend roughly 50% of their take home wage on a mortgage or rent in this country, whereas in America /Germany/ Japan it is closer to 20%

so to anyone out there that says we have an over supply, we have a flood of property to buy or rent. can you explain why rent prices are so high?

oh, this is all thanks to our F****D up planning laws.

You make a fair point but I believe you are wrong. Rents are expensive for historical reasons. Some years ago, renting carried severe risks for landlords. A bad tenant could stay put for months or even years against the wishes of the owner. As a result of this, the availability of property to rent was very small and a significant proportion was let via companies or local authorities. Much of the truly private market was associated with flat share and short term lets. Not surprisingly, rents reflected the shortage of supply and the fact that many rents were being bankrolled by companies and local authorities.

Those days have gone and there is now a glut of rental property on the market. The new breed of truly private renters are neither willing nor able to pay huge rents for long periods. The price of rental property is undergoing a slow but steady adjustment. To find enough long term private tenants, landlords are having to keep rents constant for existing tenants and are often having to accept rent cuts when new tenants move in. We have recently seen a small blip in rents but this must reflect severe financial pain being suffered by landlords. Looking at the number of 'for rent' boards now littering our streets, I am sure that rents will resume their slide downwards.

Edited by dog

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Firstly, lets differentiate between an abundance of property and an abundance of available property. There's no shortage of property, it's just that its deliberately being kept vacant by speculators. The glut of properties on rightmove that are chain-free doesn't indicate a shortage of property either.

There are empty properties and property available for sale, but the wise won't and others can't pay the prices being asked.

Many therefore stay sharing, and living with family saving, and waiting for the chance to buy a place of their own. More homes need to be built to cater in the future for those in waiting and wanting.

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Those days have gone and there is now a glut of rental property on the market. The new breed of truly private renters are neither willing nor able to pay huge rents for long periods. The price of rental property is undergoing a slow but steady adjustment. To find enough long term private tenants, landlords are having to keep rents constant for existing tenants and are often having to accept rent cuts when new tenants move in. We have recently seen a small blip in rents but this must reflect severe financial pain being suffered by landlords. Looking at the number of 'for rent' boards now littering our streets, I am sure that rents will resume their slide downwards.

I agree. The rental marketeven in the booming South East (outside Mayfair/Kensington/Chelsea) is seeing no rental inflation at all. Take home pay is the determinant of rent. That has not gone up because of extra taxes so rents have not gone up.

My house has just gone up for rent at the same price as I rented it two years ago.

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