Landlords, the game is over...

myhouse_2

THE_GHOULS_PARADISE wrote: »

Nice try but London landlords dont need to drop their rents, in fact they are still rising thankfully, as there is string demand in London - it's a small city (small as in compact and overcrowded) with a growing population.

How can landlords ignore a government decree that they are paying less. You can't ignore your customer if they are worth 40% of the market.

satchmeister

Graham_Devon wrote: »

Thankfully so is fuel, electricity & gas, and clothing.

Thankfully, wages are not growing anywher enear as fast.

The recovery is locked-in. Gas and elec prices recover by 7%, VAT soars to 20%, NI costs strengthens, cotton prices reach new highs, petrol continue to be re-enforced. Hopefully house prices will also rise as well, it is after all our main industry.

twadge_face

satchmeister wrote: »

The recovery is locked-in. Gas and elec prices recover by 7%, VAT soars to 20%, NI costs strengthens, cotton prices reach new highs, petrol continue to be re-enforced. Hopefully house prices will also rise as well, it is after all our main industry.

The recovery that is based on nothing but increased costs and flat wages.

Yeah, right, good one. That's sarcasm btw.

michaels

40% of the rental sector is housing benefit - wow!

As per the rest of the conversation, I guess the percentage in London and SE is probably lower?

Orpheo wrote: »

Looks like the coalition is pulling the plug on the theft.

http://www.bbc.co.uk/news/uk-politics-11752421

http://www.youtube.com/watch?v=_Xm1XErUvXo

"Because we are 40% of the rental market, we drove all the rents up in places like London.
"So that if you are a working person, on low or marginal income, you can't afford to live in central London, you have to be on benefits or incredibly wealthy."

Time to tackle the Rachmanism.

lemonjelly

michaels wrote: »

40% of the rental sector is housing benefit - wow!

As per the rest of the conversation, I guess the percentage in London and SE is probably lower?

If it is true that 40% of the rental market are on hb/lha, I'd agree with the assumption that London/SE is likely to be lower.

I do wonder f the 40% figure is the % of tenants who are in receipt of some hb/lha (ie perhaps a contribution towards their rental liability)?

Thinking about it, lower rental costs could have benefits for the wider economy. If people are spending a little less on their rent, they can spend it elsewhere.

AD9898_2

The market has been a massive house of cards, built on nothing apart from lax lending and cheap credit over the last decade, Duncan-Smith is about to remove one of the bottom cards and not before time.

There are really only two options to reverse the absurdity of the last decade, either engineer some kind of rapid wage inflation (IMO this can't be done) or reduce the cost of housing.

At present prices there is a massive shortfall in money to underpin prices along with decent amount of approvals (about £200 billion p.a), so something is going to have to give somewhere.

Generali

AD9898 wrote: »

The market has been a massive house of cards, built on nothing apart from lax lending and cheap credit over the last decade.....

And housing benefit too it appears.

Percy1983

I almost feel sorry for the parasites...

Actually this will only benefits the country, sounds great.

AD9898_2

Generali wrote: »

And housing benefit too it appears.

Indeed, just !!!!!! have Labour done to this country over the period that should have seen the best and most opportunities for the majority of the population, instead through greed, ineptness and flawed policy they've sent us into the dark ages.

RenovationMan

AD9898 wrote: »

The market has been a massive house of cards, built on nothing apart from lax lending and cheap credit over the last decade, Duncan-Smith is about to remove one of the bottom cards and not before time.

There are really only two options to reverse the absurdity of the last decade, either engineer some kind of rapid wage inflation (IMO this can't be done) or reduce the cost of housing.

At present prices there is a massive shortfall in money to underpin prices along with decent amount of approvals (about £200 billion p.a), so something is going to have to give somewhere.

If lower housing costs is indeed the goal of the government, then its going to cause a lot of short-term pain and long-term gain. Lower housing costs benefit everyone, even BTL landlords and property developers who know what they are doing. The only losers will be property speculators, and I'm not going to lose much sleep about that.