Rent prices rise for ninth month in a row

Blacklight

Rents in England and Wales rose for the ninth consecutive month during October to reach a new record high, research showed today.

The average cost of renting a property jumped by 0.4% during the month to £691, 4.5% higher than in October last year, according to LSL Property Services, which owns the UK's largest lettings agent network.

The group said rents were continuing to be driven up by high demand for rented accommodation, as potential buyers were forced to put their plans on hold due to the problems in the mortgage market.

The recent increases are likely to steady slightly in the run up to Christmas - traditionally a slower time for the market. But a strong underlying growth will remain, as the key market dynamics are geared towards further rises.

Lenders depress demand for purchases, rent increases. More dead money.

Orpheo

Each month that £5k drops off the prices of houses within my budget, the cost of my rent becomes increasingly irrelevant.

abaxas

As ever...

'Jesus is our lord' says nun support group.
'Shagging animals to be legalised' says animal shagger.
'Rents going up' says property company.

Generali

Rents up by 4.5% year-on-year according to these guys.

According to the Government stats people, the house rental index rose from 306.1 to 309.5 or in other words by 1.1% (from the latest RPI data).

The retail prices index is up 4.5% year-on-year.

So in other words rents, after adjusting for inflation, are either flat or falling depending on whether you believe a bunch of landlords or a bunch of statisticians.

RenovationMan

Orpheo wrote: »

Each month that £5k drops off the prices of houses within my budget, the cost of my rent becomes increasingly irrelevant.

Holy cow! You must be looking at millionaire properties to be seeing drops like that month on month. If we see 1% drops per month, to see a £5k gain you would have to be looking at houses around £6M.

I never realised that I was contributing to a forum that had such wealthy people. What do you do for a living? Are others on here so rich?

Cleaver

Generali wrote: »

The retail prices index is up 4.5% year-on-year.

So in other words rents, after adjusting for inflation, are either flat or falling depending on whether you believe a bunch of landlords or a bunch of statisticians.

I do understand that if RPI is going up at 4.5% and rents are going up less then technically they are falling. In a way.

But if you rent a property and your rent is going up, then the rent is going up? You don't really care about RPI do you?

Blacklight

RenovationMan wrote: »

Holy cow! You must be looking at millionaire properties to be seeing drops like that month on month. If we see 1% drops per month, to see a £5k gain you would have to be looking at houses around £6M.

I never realised that I was contributing to a forum that had such wealthy people. What do you do for a living? Are others on here so rich?

You've been trolled mate. There's a lot of them about. Typical signs include an offensive signature removed by the forum mods and 95% of posts thanked by rewired.

Aberdeenangarse

RenovationMan wrote: »

I never realised that I was contributing to a forum that had such wealthy people. What do you do for a living? Are others on here so rich?

No, she sits on his / her @rse all day whilst her children go up chimney's. I hear it's easy money :eek:

Generali

Cleaver wrote: »

I do understand that if RPI is going up at 4.5% and rents are going up less then technically they are falling. In a way.

But if you rent a property and your rent is going up, then the rent is going up? You don't really care about RPI do you?

True. However your costs are likely to be going up with inflation and so if rents don't keep pace your income will fall relative to prices.

Cleaver

Generali wrote: »

True. However your costs are likely to be going up with inflation and so if rents don't keep pace your income will fall relative to prices.

I understand and agree with this from an economical and theortical point of view, and would therefore never argue against it (and especially not with an economics university lecturer!)

I just find it really hard to take this view to the real world. The vast majority of people, and let's say landlords in this case, could probably easily go out and reduce their outgoings each more by 7%, for example, with little effort. If they did this then you wouldn't say that their rental income is rising. But I still see your point.

I'm not doing that well at putting my point across here, but I know what I mean! I guess I'm saying that most people when they look at their income and expenditure, look at each item separately. On our budget we log how much we spend on petrol, food, bills, personal spending, mortage etc. and also log how much income we get coming in. I guess, like most people, I'd look at in in a more simple way and think that my income is static but my costs go up. I wouldn't think that if my income rose by 1% but costs rose byb 3% that my income was 'decreasing', which I guess it is from an economic point of view. I'd say that both were rising, but one at a higher amount compared to the other.

I think we're both saying the same thing in different ways!

Generali

Cleaver wrote: »

I understand and agree with this from an economical and theortical point of view, and would therefore never argue against it (and especially not with an economics university lecturer!)

I was a tutor, not a lecturer. I'm not qualified to lecture.

Cleaver wrote: »

I just find it really hard to take this view to the real world. The vast majority of people, and let's say landlords in this case, could probably easily go out and reduce their outgoings each more by 7%, for example, with little effort. If they did this then you wouldn't say that their rental income is rising. But I still see your point.

I'm not doing that well at putting my point across here, but I know what I mean! I guess I'm saying that most people when they look at their income and expenditure, look at each item separately. On our budget we log how much we spend on petrol, food, bills, personal spending, mortage etc. and also log how much income we get coming in. I guess, like most people, I'd look at in in a more simple way and think that my income is static but my costs go up. I wouldn't think that if my income rose by 1% but costs rose byb 3% that my income was 'decreasing', which I guess it is from an economic point of view. I'd say that both were rising, but one at a higher amount compared to the other.

I think we're both saying the same thing in different ways!

I agree, especially with your final sentence. If prices rise and your income doesn't then you don't think, "Oooh, inflation is at 4.5%", you think, "Hell, bananas are up 10%" or "Best have a pint rather than a glass of wine at these prices". What happens is that your lifestyle slowly gets squeezed.