'Gazumping' As Rents Hit New Record High

Really2

http://news.sky.com/skynews/Home/Business/Rents-Hit-Record-High-In-May-With-Average-Price-Now-696-A-Month-LSL-Property-Services-Says/Article/201106316013519?lpos=Business_First_UK_News_Article_Teaser_Region_1&lid=ARTICLE_16013519_Rents_Hit_Record_High_In_May_With_Average_Price_Now_%3F696_A_Month%2C_LSL_Property_Services_Says

Saw this on the front of my paper today

Competition for rental property is now so fierce would-be tenants are gazumping each other and sending landlords' incomes skyrocketing to record highs, new research says.

Rents increased for the fourth month in a row during May to reach a new record high, according to new research by lettings firm LSL.
The average cost of renting a property rose by 0.5% during the month to stand at £696 a month, 4.4% or £30 more than in May last year, according to the UK's biggest lettings agent network, LSL Property Services.
Rents are continuing to be pushed up by strong tenant demand, as would-be buyers are forced to put their plans on hold while they raise the substantial deposits they currently need.

I was quiet surprised to be honest.

Talked to my folks today and the people who put an offer on their house purchased because rent had gone up so much in the last couple of years and it was now financially pointless renting for them (£700pm Rent, £135K for the same house).

I wonder how many more this will happen to? But I suppose the other problem is this lowers the amount people will be able to save?

Thrugelmir

From the same article.

Tenant arrears decreased in May, with 11.5% of all UK rent unpaid or late by the end of the month. Although
this is a slight decrease from the 11.8% in the previous month, it remains well above the 10.6% average of
2010

Increasing rents but a high proportion of arrears. So all is not rosy in the landlords garden.

mikey72

I don't know about rent increasing. It's either falling here, or the houses stay empty.
Tenants are spoilt for choice.

mcc100

Really2 wrote: »

http://news.sky.com/skynews/Home/Business/Rents-Hit-Record-High-In-May-With-Average-Price-Now-696-A-Month-LSL-Property-Services-Says/Article/201106316013519?lpos=Business_First_UK_News_Article_Teaser_Region_1&lid=ARTICLE_16013519_Rents_Hit_Record_High_In_May_With_Average_Price_Now_%3F696_A_Month%2C_LSL_Property_Services_Says



Talked to my folks today and the people who put an offer on their house purchased because rent had gone up so much in the last couple of years and it was now financially pointless renting for them (£700pm Rent, £135K for the same house).

So people are now being forced to buy because they cannot afford to rent !!!!!!!!

Really2

Thrugelmir wrote: »

From the same article.



Increasing rents but a high proportion of arrears. So all is not rosy in the landlords garden.

Perhaps, but the idea of gazumping on rent does not bode well for the UK addiction with house prices if you ask me.
Either that or we are critically short of housing a fair amount of areas.

System

mikey72 wrote: »

I don't know about rent increasing. It's either falling here, or the houses stay empty.
Tenants are spoilt for choice.

Where's that?

Really2

mcc100 wrote: »

So people are now being forced to buy because they cannot afford to rent !!!!!!!!

Well not forced, they wanted to buy at one point but the value of renting vs owning to them has reached the point that it was not financially sensible for them any more to rent.
It is a very personal thing for them and is most probably mirrored across the country.

But I would say if rents carry on rising it will limit the chances of house price falls further I should imagine.

ukcarper

Definitely going up where I am another interesting thing is the cheapest 2 bed house is £100 a month more than LHA for 2 beds.

chucky

Really2 wrote: »

'Gazumping' As Rents Hit New Record High

when do the housing benefit cuts start?

mikey72

Joeskeppi wrote: »

Where's that?

"The West Midlands saw the biggest fall in rents, with a drop of 0.7%, followed by the South West at 0.6% and Wales at 0.2%."

West Midlands

tartanterra

mikey72 wrote: »

I don't know about rent increasing. It's either falling here, or the houses stay empty.
Tenants are spoilt for choice.

mikey72 wrote: »

"The West Midlands saw the biggest fall in rents, with a drop of 0.7%, followed by the South West at 0.6% and Wales at 0.2%."

As you state, the West Midlands has the biggest fall in rents, and, the tenants are spoilt for choice.

So....on a modest £100 a week rental, a landlord can expect a reduction in income of 70 pence a week on average. A whopping £36:40 per annum.

If that's as bad as it gets, it doesn't appear too disastrous for landlords, does it?