Rising rents pushes 100,000 more into flatshares

Graham_Devon

Rising rent inflation has forced more than 100,000 more renters into the flatshare market over the past year, according to the latest research from easyroommate.co.uk, a flatsharing website.

The average number of renters living as flatmates or lodgers has increased since a year ago as renters abandon living alone to save on increasing rents.

Jonathan Moore, a director of the website, said that the low level of mortgage lending to first-time buyers had been a bottleneck for buyer demand, driving thousands of frustrated first-timers into rented accommodation.

"This has driven up rents in the wider rental market – driving down the affordability for many renters," he said.

A poll by the website found that more than 80pc of renters aimed to be a homeowner in the future. However, financial issues remain the main stumbling block, with 70pc of respondents saying they did not earn enough money for the mortgage they would need or did not have a big enough deposit. As a result, just 27pc of renters said they would be in a position to buy a home in the next three years.

While some may not get past the first sentence, without seeing more people in flatshares = rents can increase further...

...Theres a telling sign of the potential problems this is causing.

While 80% of renters aspire to be a homeowner, just 27% said they would be in a position to buy a home in the next three years. Let alone questions surrounding social issues this could raise down the line.

Which leads to questions as to where the next leg of support at the bottom run is going to come from for the housing market.

But enough with all that.

More people are living together, meaning there is more household income, maning rents can rise further. Woohoo! :beer:

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8720113/Rising-rents-force-young-people-into-flatshares.html

pwllbwdr

Jonathan_Moore wrote: »

the low level of mortgage lending to first-time buyers had been a bottleneck for buyer demand, driving thousands of frustrated first-timers into rented accommodation.

Isn't that mortgage rationing feeding into demand for renting?

Rinoa

Graham_Devon wrote: »

Which leads to questions as to where the next leg of support at the bottom run is going to come from for the housing market.

I think we can safely say where that support will come from.

WooHoo.

CLAPTON

presumably all the houses that FTB would normally have bought are lying empty?

prsumably with all these people squeezed into flat shares, there are loads of one bed room flats empty too?

ruggedtoast

The effects of this will be longitudinal. People will not want to take on large debts studying if they can't hope to be a stakeholder in prosperity.

The free market cannot work by repeatedly stacking every card against younger people to protect the assets of the old.

The birth rate of indigenous non welfare dependent briton's is already grinding to a standstill.

What kind of a developed country is this that can't provide basic housing?

Turnbull2000

And we have, what, in excess of half a million new arrivals each year, all who will require housing of some sort? And builders will of course continue to drip feed new housing onto the market to protect their margins and land bank values. This is just the start.

HAMISH_MCTAVISH

Rising rent inflation has forced more than 100,000 more renters into the flatshare market over the past year, according to the latest research from easyroommate.co.uk, a flatsharing website.

And now here's the way that story should have been written, if it were to be honest.....

Rising population has forced more than 100,000 additional renters into the flatshare market over the past year, as the critical shortage of housing in the UK has led to rapidly rising rents.

The average number of renters living as flatmates or lodgers has increased since a year ago as demand exceeds supply for rented accommodation, and the market inevitably rations the limited supply through price. Those renters on the lowest income are forced to abandon living alone as they can't compete on price, and there aren't enough houses to go around.

Jonathan Moore, a director of the website, said that mortgage rationing to first-time buyers had prevented enough houses being built, driving thousands of frustrated first-timers into rented accommodation and forcing house building to the lowest level in a century when population growth is accelerating rapidly.

"This has driven up rents in the wider rental market – driving down the affordability for many renters, and forcing a generation to enrich their landlords" he said.

Graham_Devon

As suspected, the housing optimists completely ignore what I suggested many wouldn't get to.

The effects of this, Hamish, Pimpernel etc are less and less people able to buy in to the housing market, and, with rising rents, more and more finding it taking longer to secure the financial means of doing so.

Is there not a big big problem brewing here?

Percy1983

ruggedtoast wrote: »

The effects of this will be longitudinal. People will not want to take on large debts studying if they can't hope to be a stakeholder in prosperity.

The free market cannot work by repeatedly stacking every card against younger people to protect the assets of the old.

The birth rate of indigenous non welfare dependent briton's is already grinding to a standstill.

What kind of a developed country is this that can't provide basic housing?

This really stood out to me, me and my other half are both non welfare dependant and can't afford to have children as we can't afford a house to put them in..

Meanwhile many chavs will have a good few children by now and some may even me grandparents.

IveSeenTheLight

The wife and I are investigating the potential to expand our BTL portfolio given the demand for rental.
As well as a strong market for flats, were also seeing a strong market for family homes.
Family homes are also showing to be more stable in terms of tenants rental terms

Rinoa

Graham_Devon wrote: »

As suspected, the housing optimists completely ignore what I suggested many wouldn't get to.

The effects of this, Hamish, Pimpernel etc are less and less people able to buy in to the housing market, and, with rising rents, more and more finding it taking longer to secure the financial means of doing so.

Is there not a big big problem brewing here?

Many countries have 60/70% renting. Doesn't seem to be a problem in say Germany.