MSE News: Rents surge through £700 barrier

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  • PincherPincher
    6.6K Posts
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    If you are on a 75% LTV BTL mortgage,
    you would be lucky to have any income from it,
    after all the expenses.


    The thing is, if we get into hyper-inflation, the house will keep its value, and the guy holding cash will be burnt.
  • edited 16 July 2011 at 6:28AM
    dktreeseadktreesea Forumite
    5.7K Posts
    edited 16 July 2011 at 6:28AM
    People holding cash are getting burnt anyway. Interest rates for deposits are terrible and the pound continues to fall in value against other currencies.

    Caveat mortgager, our rent hasn't gone up in real terms in the 7 years we have rented this property either. But it's a double edged sword, because the property no longer meets our needs. Buying is out of the question - it's far cheaper to rent our flat than to buy an equivalent quality flat. We are reluctant to move to a more suitable rental property because, while our rent hasn't skyrocketed, ....yet, fingers crossed - the population has soared and with it rents around here in general.
  • J_i_mJ_i_m Forumite
    1.3K Posts
    Mobeer wrote: »
    Please explain why £700 is a "barrier"

    It's a "barrier" to me, because I can't bloody well afford it! :rotfl:

    I'm lucky enough for my rent to have only risen once... and the the LL wanted £50 a month extra, the agent negotiated it down to £25 extra.

    £625-650 has always been stretching it for me, saving has been extremely difficult and usually impossible.

    But it's not so much rising rents that are hitting me, it's having a major cut in my income. It means that I simply can no longer afford to live here at all. I could look for somewhere cheaper, but that would mean living in a shoe box in an undesirable area (sorry to be snobish).

    Luckily for me, I have the option, which I am taking, to move back in with the parents. Rent free, (paying my share of the bills of course and providing my own food) and the bonus here is that at least I will be able to save money to put towards my mortgage deposit.
    :www: Progress Report :www:
    Offer accepted: £107'000
    Deposit: £23'000
    Mortgage approved for: £84'000
    Exchanged: 2/3/16
    :T ... complete on 9/3/16 ... :T
  • Gorgeous_GeorgeGorgeous_George Forumite
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    Pincher wrote: »
    If you are on a 75% LTV BTL mortgage,
    you would be lucky to have any income from it, after all the expenses...

    Depends on your mortgage rate. At 5% you would struggle to make a profitin the south. Up north where properties are more affordable, you could make a decdent return.

    On the other hand, if you can borrow at around 1.5% it is esy to make a profit.

    As it is, rents are rising at less than the rate of inflation. The fact that wages are not keeping up with inflation isn't relevant, Landlords will set the rent at whatever the market will stand. If tenants want lower rents, stop agreeing to pay higher ones.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • dizziblondedizziblonde Forumite
    4.3K Posts
    Round here renting's gone nuts. Stuff goes up to let and goes the same day. Our old house went re-let with the first viewing with a collossal rental void of 1 day (good job we were decent tenants and left the place as we got it huh? - hubby even popped along to show them how to work the central heating timer as it's a rarer model and not obvious to start with), and it's about the same with everything that goes up to let pitched at the professional/middle-class family type market. In that level of competition for rental properties (it's what drove us to buy) I can understand prices being nuts.
    Little miracle born April 2012, 33 weeks gestation and a little toughie!
  • Round here renting's gone nuts.

    Might be a good idea to say which area you are referring to.
  • HAMISH_MCTAVISHHAMISH_MCTAVISH Forumite
    28.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    Might be a good idea to say which area you are referring to.

    Renting is more expensive than mortgage interest payments in 80% of the UK.

    Rents are at record highs, rising in 9/12 regions, and it's inevitable this trend will continue for quite some time.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”

    -- President John F. Kennedy”
  • atarisrocksatarisrocks Forumite
    618 Posts
    Part of the Furniture 100 Posts Combo Breaker
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    does this affect renting a room as my bf moved into a room last year and it was £300 a month for room and bills. A room in his house has gone up for rent which is half the size of his and it now £450 a month and there loads of people interested.
  • jimjamesjimjames Forumite
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    FWIW my rent has fallen by 23% in real terms during the 4 years Ive lived here!

    My mortgage interest has fallen by over 60% in the last 4 years so potentially landlords will not be affected by rent falling by 23% in real terms.
    PS love use of the word surge as in 'Surge through £700 barrier'. The figure quoted is £701
    Yep, typical journalistic hype!
    Remember the saying: if it looks too good to be true it almost certainly is.
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