Average Rent soars to £876, up 2% in 3 months...

BritRael

HAMISH_MCTAVISH wrote: »

...Just an inevitable consequence of mortgage rationing...

Mortgages are not being 'rationed'.

They are simply no longer being handed out to people who should never have been given them in the first place. If you have a proven track record of saving then you have a great chance of getting one.

HAMISH_MCTAVISH wrote: »

......whilst population soars.

Is the population 'soaring'? Source please.

JonnyBravo

BritRael wrote: »

Is the population 'soaring'? Source please.

Whilst you may be able to argue that population is simply "rising" and not soaring the number of households is certainly rising far quicker than the net number of houses being used/available.
Smaller families and an increase in singles, young and (especially) old explains this.

wotsthat

Graham_Devon wrote: »

If people economise much more, we fall back into recession.

Half the problems at the moment are caused by people not spending. Look at what the US consumer figures did to the DOW for a hint of the problems associated with economising.

We cannot base our economy on rising house prices, and removing spending from the economy to service higher and higher debts.

It's surely better to economise to buy a house for your family? TV's & Blackberries are all imported anyway - the people hurt would mainly be outside of the UK. There would be damaged retailer margins but, in times of thrift, they'd have to improvise to sell things that we really need OR reduce the price of the things we don't.

What's good for an individual isn't necessarily good for the economy. I can't see many getting away with saying to their partners "sorry dear, I can't save towards the house deposit this month - I need to buy an IPAD to keep the economy in growth"

Rinoa

Graham_Devon wrote: »

If people economise much more, we fall back into recession.

Half the problems at the moment are caused by people not spending. Look at what the US consumer figures did to the DOW for a hint of the problems associated with economising.

We cannot base our economy on rising house prices, and removing spending from the economy to service higher and higher debts.

You believe the way out of our problems is for everyone to buy smartphones and big tellys? Hmmm.

Anyway, the money isn't lost, it just ends up with the landlord instead of the phone company, curry's or comet. So probably more of it will go back into the economy.

Graham_Devon

Rinoa wrote: »

You believe the way out of our problems is for everyone to buy smartphones and big tellys? Hmmm.

Not what I said, though nice try. There are other economies out there. Childcare, Building, DIY, Tourism etc etc etc.

Anyway, the money isn't lost, it just ends up with the landlord instead of the phone company, curry's or comet. So probably more of it will go back into the economy.

If you really wish to believe that, then I cannot be bothered arguing or explaining this one to you. Lost cause really. I od understand that you are an optimist, but you are treading into the realms of delusion now.

DervProf

Graham_Devon wrote: »

So do you thik this is good or bad news?

Obviously bad news for those who rent, or want to rent.

Good news for landlords.

Bad news for the longer term prospects for the economy. If there is a sudden rush to buy, then house prices will rise. Higher house prices mean more of our money being tied up in our dwellings. Future purchasers will have to borrow more money and will therefore have less money to spend on other things. The big winners will be the banks, as bigger mortgages = larger profits.

Generali

Rinoa wrote: »

Mortgages have been restricted for a few years, but this hasn't prevented house prices rising 13% or so since early 2009.

If you cherry-pick data and don't seasonally adjust or adjust for inflation you can prove pretty much anything. Since October 2007 for example, nominal house prices (measured by Nationwide) are down 10.3%. If you prefer to keep currency as a constant and measure in real terms (as I do) then prices are down over 20%.

Picking either period proves nothing except the ability to pick numbers off a chart.

Rinoa wrote: »

Everyone requires shelter, and there isn't so much of it to go round these days. There is always scope for people to economise in other areas, maybe they could start with their 50" plasma TV's or £40 per month Blackberrys.

I agree that everyone requires shelter but I don't read tales of people screaming for shelter. People could economise in other areas or then not of course. Many people feel that they 'need' Sky TV for example. I rented a cheaper house in my 20s so I could afford Sky TV on Sunday afternoons for example. That doesn't make me a good or bad person, just a homo economicus.

DervProf

HAMISH_MCTAVISH wrote: »

The jump in rental yields follows a period of rapid rental price growth, which has seen average UK rents increase by 2% in three months and they are now 4.4% up compared to this time last year.

I wonder what effect this will have on the inflation figures ? Does RPI not include the cost of housing ?

Percy1983

JonnyBravo wrote: »

Yawn. Let's do this again then....



Sure Percy.

How's your missus going repaying your debt?

Didn't know you cared so much.

You will be glad to here we are both doing just fine and the gambles made (mostly by her I will admit) have paid off massively for us as a couple.

You will be happy to hear that due to me upping my income the figures will 'balance' sooner than I originally thought. At the current rate by the time we are buying a home she would have techinally paid approx £1500 of my debt, to which after less than a year of home ownership (with me paying a higher percentage of the bills) all 'debts' will be cleared.

Maybe after that point I should start adding up how much she owes me? or maybe we just don't care (I know this is the part you find are to believe).

As I have said before we have taken a course of action which as benefited us a couple massively, we are in this life together and as we had a common goal we worked as a team.

I see no moral problems with our course of action and I am sure many other won't. As previously invited feel free to PM me if you have any concerns with the state of my soul.

Rinoa

Graham_Devon wrote: »

Not what I said,

It's certainly what you implied.

Graham_Devon wrote: »

I od understand that you are an optimist, but you are treading into the realms of delusion now.

For myself, even if I was 100% wrong, I'd still rather be a deluded optimist than make 37000+ misery sodden posts, without ever once believing in a better tomorrow.