Sunday, May 20, 2012

Squeezing out the last drops of blood

Rents rise again despite more tenants falling into the red

Nearly 10% of rent in England and Wales was unpaid in April, but rents still rose 0.5%. In April 9.9% of all rent, equal to £306 million, was late or unpaid at the end of the month, up from 8.7%, or £267 million, in March.

Posted by stuartking @ 11:58 AM (1755 views)
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8 thoughts on “Squeezing out the last drops of blood

  • In London the opposite is true. Since January I have seen asking rents in “prime” areas drop circa 10%. The desperation in agents’ eyes is plain to see. No longer are they spinning yarns about a “shortage of stock”. The big firms aren’t hiring thousands of graduates. What graduates there are in London can only get McJobs and are labouring under a mountain of student debt. Banks are paying much-reduced bonuses, and not in cash form. This has kicked out the entire bottom-rung of the housing ladder – the first-job rental market.

    We’re back to mid-90’s cashflow levels, with 2000’s rent and house levels. Something has to give. Either huge inflation has to push wages up and burn off debt, or rents and house prices have to come off.

    But, just as with the problems with the EU and the euro, everyone is in massive denial, imagining some other solution is possible.

    We live in The Age of Denial. Quite extraordinary.

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  • I mean “with 2000’s rent and house-PRICE levels”

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  • Michael1william says:

    Age of greedy landlords. Something really does have to give I agree

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  • mark wadsworth says:

    The arrears are all ticking up nicely.

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  • Andrew Barry says:

    I don’t believe these rent increases. In Tunbridge Wells, the agents can’t get much more than a couple of years ago. I had my rent frozen for another 6 months at the level I agreed 18 months ago. I wonder if the apparent increase is down to more accidental landlords trying to rent out their house that they can’t sell? A house costs a lot more than the usual flat to rent.

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  • sneaker,
    What do you define as “prime”? I’ve been keeping my eye on a handful of areas in zone 2 and I can’t see any sign of a softening in asking prices. If anything they’re drifting upwards (might just be an Olympic effect).

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  • talking of the olympic effect…. these normally go for about £750 – £1k pcm…. but:

    http://www.findaproperty.com/to-rent/property-11062825

    I’m wondering to what extent (if at all) these type of lets (assuming someone is mad enough to actually pay it) effect the rental indicies?

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  • techie,
    Yes ads like that can skew the averages. And there are a lot of landlords holding on until after September, because they might make a few grand on the Olympics (or simply they might want somewhere to stay in London themselves).

    Nevertheless the anecdotal evidence points towards higher rents in London too.

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