Rents Continue Rising

chucknorris

Wee_Willy_Harris wrote: »

Oh Chuck, you don't see opportunities, you are far too busy window shopping for the pipe and slippers.

Pipe and slippers might be your style but mine is more something like a house with either holiday cottages or enough land to build them actually.

Wee_Willy_Harris

HAMISH_MCTAVISH wrote: »

By an average of £9 per week, and phased in over two years. Hardly earth shattering.

It isn't being "phased in" over 2 years, is it? By the end of year one, the reductions will have been applied. And those reductions will be compound, year on year, as the 30th percentile will, inevitably, fall in value.

Wee_Willy_Harris

chucknorris wrote: »

Pipe and slippers might be your style but mine is more something like a house with either holiday cottages or enough land to build them actually.

Of course it is, and good luck with that. But (yet again) we are looking at the bigger picture here, much as I realise how you enjoy talking about yourself exclusively, the BTL sector extends past the ramblings of Chuck. Remember... BIGGER picture, Chuck?

chucknorris

Wee_Willy_Harris wrote: »

Of course it is, and good luck with that. But (yet again) we are looking at the bigger picture here, much as I realise how you enjoy talking about yourself exclusively, the BTL sector extends past the ramblings of Chuck. Remember... BIGGER picture, Chuck?

You are too timid, that's your problem.

Wee_Willy_Harris

HAMISH_MCTAVISH wrote: »

Example 1.

Wee Willy needs to renew his lease.

Wee Willy has £100 a week to spend on housing. The rest goes on Sky, Buckfast, Cigarettes, etc.

Wee Willy's housing benefits reduce by £9 a week.

Wee Willy asks his friendly landlord, Hamish, for a discount.

Hamish says No.

Wee Willy looks around and sees that other flats have risen in price, and realises he'll just have to cut back on the fags and Buckfast.


Example 2.

There are 100 people in Willytown looking for flats.

There are 90 flats for rent in Willytown.

Wee Willy is looking for a flat. Wee Willy's flat renting budget is £100 a week, but all the flats range from £125 a week for a one bed, to £175 a week for a two bed.

Wee Willy can't afford a one bed flat anymore, because they've gone up in price. Of course, the only reason they went up in prices is because demand outstripped supply. So there are plenty of other people who need to share accommodation as well. Willy can speak to his mate, Graham, who also has £100 a week and can't afford a flat, and they can combine their resources.

Willy and Graham now have £200 a week to rent a flat. Which gets them a two bed, and even gives them spare budget for the next few years inevitable rent increases.


Once again, as long as we fail to build enough houses for the growing population, the ONLY possible outcome is more people, and hence more income, per house.

Hope that's now simple enough for you to understand.

Example 3.

Wee Willys LHA award drops by £9 a week.

Wee Willy simply pays £9 a week less rent.

Wee Willys LL is furious, but also knows there is nothing he can do because he doesn't want a void, it would take months to get him out anyway and he would be very likely to replace him with another LHA tenant who, if the same thing happened, would be safe for 6 months.

Wee Willy just shrugs and continues to smoke and drink as before.

Wee_Willy_Harris

chucknorris wrote: »

You are too timid, that's your problem.

Oh Chuck. This isn't about you and me. The problems of 2 little people don't amount to a hill of beans in this crazy world.

chucknorris

Wee_Willy_Harris wrote: »

Oh Chuck. This isn't about you and me. The problems of 2 little people don't amount to a hill of beans in this crazy world.

I don't have any 'problems' Willy. I am prefectly happy with the way things are.

Wee_Willy_Harris

chucknorris wrote: »

I don't have any 'problems' Willy. I am prefectly happy with the way things are.

Oh Chuck. Your individual happiness is of no consequence to the BTL sector as a whole, which is what we are (trying) to discuss. If it makes you happier, I'm sure you have invested wisely and that those investments will continue to multiply, like flies on shlt, with everything you touch turning to gold. I'm sure you could make a profit from selling ten pound notes for a fiver each, but this isn't about you. Broaden your mind, Chuck, and look outside your safe little window at the BIGGER PICTURE, that's what really matters.

chucknorris

Wee_Willy_Harris wrote: »

Oh Chuck. Your individual happiness is of no consequence to the BTL sector as a whole, which is what we are (trying) to discuss. If it makes you happier, I'm sure you have invested wisely and that those investments will continue to multiply, like flies on shlt, with everything you touch turning to gold. I'm sure you could make a profit from selling ten pound notes for a fiver each, but this isn't about you. Broaden your mind, Chuck, and look outside your safe little window at the BIGGER PICTURE, that's what really matters.

I know it isn't about me (or you) but you are just too timid and fearful you will never own a business of any kind because you are far too bearish.

HAMISH_MCTAVISH

Wee_Willy_Harris wrote: »

It isn't being "phased in" over 2 years, is it?

Yes, it is.

The changes are being applied initially for new applicants only, and then also for renewals later.

By the end of year one, the reductions will have been applied. And those reductions will be compound, year on year, as the 30th percentile will, inevitably, fall in value.

Absolutely untrue.

There is no compounding effect, and no reduction in the 30th percentile, because a sudden influx of people looking for lower end rents will inevitably push those rents up.

Example.

Range of one bed flats = £100 per week to £200 per week.

30th percentile = £130.

Demand doubles for all flats between £100 and £130, as all those on benefits currently living in a range of 50% of housing are forced into a range of 30% of housing. Price inevitably increases to £130 for all flats at the bottom end. New range = £130 a week to £200 a week.

30th percentile now £150 per week......