MSE News: Rents slip as more first time buyers ge...

[MSE Helen]

"Private rents dropped for the third consecutive month in January as increased mortgage availability eased pressure..."

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Rents slip as more first time buyers get mortgages



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[tim123456789]

I have to say I can't see the point in news release like this

Rent changes vary considerably from region to region and posting headlines based upon the average is just nonsense

tim

[sandsni]

It's also possible that rents have slipped in the past 3 months because few people want to move close to Christmas time and desperate LLs have dropped their prices to attract more interest. Might have nothing whatsoever to do with mortgage availability.

[rogerblack]

Or indeed because the changing of LHA to the 30th percentile rates has finally kicked in, and tenants on LHA are being forced to negotiate lower rents, or are unable to take up properties with higher rents.

[ruggedtoast]

Good! GOOD!!!

[HAMISH_MCTAVISH]

Originally Posted by sandsni

It's also possible that rents have slipped in the past 3 months because few people want to move close to Christmas time and desperate LLs have dropped their prices to attract more interest. Might have nothing whatsoever to do with mortgage availability.

That's right.

The LSL rent index falls over winter every year.

It would be good news if significantly more people were getting mortgages, and so lessening demand for renting to the extent rents would come down, but it's unlikely that point has been reached yet.

Rents will probably rise again this year, but perhaps more slowly than the last few years, as mortgage availability continues to slowly increase.

[sammyw]

Our rent went up £40 a month in January Still saving for deposit for our first house

[Turnbull2000]

Just a seasonal blip. Rents will rise ahead of earnings for a good few years yet. Expect 5-6% growth in 2013.

[jayship]

I wish!!!!. Landlords in London are demanding an increase.

[zerog]

Originally Posted by jayship

I wish!!!!. Landlords in London are demanding an increase.

Rents have nothing to do with mortgages, at least in London. Private rents are set by the councils, as landlords will not rent privately with all the risk when the council will pay them directly to house those people who don't pay their own rent.

Lots of foreigners want to live in London and either they don't care what the rent is, or the employer pays and doesn't care. This forces people who do care about their rent to move further out, which increases the demand there.

[jayship]

Zerog
This thread is about rents and from what i know private landlords are reluctant to let out to local authotities in London as they pay 25/30% less than what they are able to get privately. There is a possibility of rent not being paid in all sectors including where housing benefit is paid to the tenant and not the landlord.

[keybored]

Originally Posted by sammyw

Our rent went up £40 a month in January Still saving for deposit for our first house

Luxury, our landlord wants an extra £200pcm

[Pincher]

If I get good tenants, I typically don't raise rent for the first three years, because the changeover cost a lot of time and money, so I would rather they don't economise by downgrading. In these days of long term salary freezes, you can upset a perfectly good apple cart by being too greedy.

If they are a nuisance, the increase in rent is really a hint that I want them to go.