Saturday, October 17, 2015

Real world ZIRP for renters

Generation Rent sees increases of 6.3% on average whilst being told it's disinflation

Today has seen the publication of new figures for rents in the UK private-sector and they provide an example of “And the beat goes on”. Indeed as I will discuss they provide quite a counterpoint to the UK inflation figures which only on Tuesday told us that the headline CPI rate of inflation was -0.1% ... Rental inflation surges again. The latest numbers from Your Move and Reed Rains tell a very different story. Average rents now stand at a new record of £816 per month, after rising by 1.6% between August and September. So we immediately get a very different story to that presented in the official inflation data as those who pay rent presumably have steam coming out of their ears. This issue is exacerbated even further if we look at the annual numbers.

Posted by quiet guy @ 02:01 AM (4240 views)
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4 thoughts on “Real world ZIRP for renters

  • Well I disagree that the official figures on this are misleading compared to ones published by e.g. Your Move. The blog says that CPI is down 0.1% but that CPIH grew by 0.2% over the same period. Since ground rent is just one component of CPIH (it looks like CPIH is just CPI with home rent as an additional component of the index) it makes a huge difference. You can infer significant increases in rental costs. Also it’s possible to trace the methodology of official statistics and they are collected using high quality surveys and procedures. What is Your Move’s methodology and with what transparency do they make it known to Joe Public ..?

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  • Meanwhile, my mortgage is cheaper than last year, rates plummeted from 2.3% to 1.7%. BTL mortgages are also falling

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  • This is not universally true. Rent on flat we own in nearby town has not increased in the eleven years we’ve had it. Management charges have almost doubled and insurance more than doubled. It is worth no more than when purchased, despite improvements. I am too old to be able to remortgage to a lower interest rate. Market forces and changes to the benefits system combine to make rental increases impossible. National averages are extremely misleading with huge regional variations and all data massively skewed by London region figures. Some tenants are doing very well as, no doubt, are some landlords.

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  • sibley's b'stard child says:

    Fascinating Libby. On a similar note, since controlling my calorie intake better i’m now down to 12 stone and feel great for it. The wife is also appreciating the new slimline me.

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