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MSE News: Rents are back on the rise
Former_MSE_Helen
Posts: 2,382 Forumite
This is the discussion thread for the following MSE News Story:
"The typical rent rose by 0.1% in January to £712 a month in England and Wales, according to LSL Property Services ..."
"The typical rent rose by 0.1% in January to £712 a month in England and Wales, according to LSL Property Services ..."
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Comments
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This is a reflection of the weak housing market with regards to sales (not renting).0
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As with previous headlines that originate from LSL Property Services (and/or the LL associations) let's see the true background numbers involved. This is one of those statistical extrapolation jobs - they don't have data available from every PRS tenancy.
We can read in the page linked to
"In January, 10.7% of all rent was late or unpaid at the end of the month, a figure largely unchanged from December but above the 10.2% average for the previous 12 months." "10. 7% of all rent"? Really? Or is that just 10.7 per cent of rent payments due to those LLs/LAs who bothered to respond to a survey?0 -
That's a huge rise (0.1%) compared with the falls from the previous falls. Is it exactly 0.1% or just rounded up from 0.06% to make it sound that massive. Also I'm sure a 0.06% rise as so big is clearly a rise with say a 3% margin for error and not actually a fall.
Hold the press we have clear proof of a strong British, European and world wide recovery based on this figure.
It it goes down next month can we have an official MSE thread as well?:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Rents are rising and will continue to rise as the housing shortage worsens and mortgage rationing forces the young to enrich their landlords instead of themselves.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Being a 'Bear of small brain' I can see this ending only in one way. We are already seeing rent arrears which means we must be getting to the unaffordable point where people can no longer afford the rent. It will be no use throwing a tenant out if there are very few left with the money. If they do not want an empty property and no income surely the only option will be to REDUCE the rent.
Too simplistic?0 -
HAMISH_MCTAVISH wrote: »Rents are rising and will continue to rise as the housing shortage worsens and mortgage rationing forces the young to enrich their landlords instead of themselves.
Really Hamish, you have a lot of faith in a single 0.06% rent rise means a boom in housing rent and house prices. You do know these figure are the December ones. Now you reckon rents will continue to go up yet you forget about January's Housing benefit caps which have come in. So with a massive fall in rents from that across the country are you going to organise a massive rent increase in the private sector to compensate and make rent figures positive next month?
:rotfl::exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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I posted this link on another thread but it may be more apt here.
Rents over the last month have dropped in some areas & risen in others. See the table at the bottom of the article. Interestingly the SE, but not London, saw a fall.0 -
I rent from my local authority in Scotland, a 2 bedroom flat in an area decribed as low demand. My rent is not high but almost always increases by around 5% per year. Last year for most the rent did not go up, due to the format they use to calculate increases, however as our flat had been "modernised" we had a substantial increase in that year . Our latest rise has just come in and it`s 5.2% due to start soon. As my wages have not gone up in almost 5 years I have to cut back in other areas, the council are forever pleading poverty, the chain of thought being if you can`t afford the rent you should be on some type of benefit. It may well come to that.0
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Really Hamish, you have a lot of faith in a single 0.06% rent rise means a boom in housing rent and house prices. You do know these figure are the December ones.
No Brit, I have a lot of faith in the fact that we create more than 250,000 additional households a year and only build slightly over 100,000 houses.
The inevitable result of that fact is that the costs of either rent, or house prices, or both, will ultimately rise.Now you reckon rents will continue to go up yet you forget about January's Housing benefit caps which have come in.
The cap went into place for new claimants a year ago. It had absolutely no impact whatsoever. Now the cap will impact those whose lease expires each month for the next year. And outside of a few thousand families in central London, this will have almost no impact at all either.So with a massive fall in rents from that across the country
Only 25% of private renters are in receipt of housing benefit so for 75% of renters and landlords this will have no impact at all.
And the average shortfall in benefits across the country from the new changes is just £11 a week, and most families will find a way to come up with the difference. Housing is a primary need and spend will be diverted from other things.
This may, just may, artificially restrain the rises in rents for this one year only, but it certainly won't cause them to crash.
As time goes on the market will continue to ration the shortage of housing through price, by excluding those at the bottom who cannot afford to pay.
And all the tinkering in the world through artificial means such as mortgage rationing or benefits limits can only hold back the tide of soaring prices for a short while, before the fundamentals reassert themselves.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
What Hamish said. The HB/LHA cap had absolutely no bearing on the rent I decided to set. I couldn't even tell you what it is in my area and my current tenant is on sick benefits.0
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