How high can they go? Rents keep breaking records

Turnbull2000

http://www.planetpropertyblog.co.uk/2011/10/12/how-high-can-they-go-london-rents-now-at-76-of-average-earnings/

There must be some very happy landlords in the capital…


We wondered a few months back whether rents could keep on rising in an environment in which incomes are being relentlessly squeezed.


Thus far, the answer seems to be yes.


According to research by FindaProperty.com the average monthly rent in Britain rose by 1.6% in September, taking the typical asking price to £890 per month, the highest price ever recorded by the index.


The increase means that a typical renting household can expect to spend almost half (46.2%) its monthly net earnings on accommodation.

Those take home pay figures seem rather on the low side, or at least don't reflect double full-time earning households.

Thrugelmir

Rent arrears of around 10%. Suggest that the good times are over.

Conrad

Funnily enough my letting agent in the office was only saying earlier how local rents have rocketed recently. Her arrears run at about 3%, but the majority end up clearing thier arrears.

Thrugelmir

Conrad wrote: »

Her arrears run at about 3%, but the majority end up clearing thier arrears.

In value or by number of tenants?

Conrad

Thrugelmir wrote: »

In value or by number of tenants?

Proportion of tenants - this is in the South East. A lot of them are in reciept of HB. You'll now say that HB will be slashed, but you guys have been painting one scenario after another that will see off the B2Lers, but thus far LL's have won through every time.

Thing you need to keep in mind is that my typical LL is just a simple bloke who doesn't trust packaged investments or shares and has no concept of metals investing - he just knows property and sticks with it, end of.

Road_Hog

Conrad wrote: »

Proportion of tenants - this is in the South East. A lot of them are in reciept of HB. You'll now say that HB will be slashed, but you guys have been painting one scenario after another that will see off the B2Lers, but thus far LL's have won through every time.

Thing you need to keep in mind is that my typical LL is just a simple bloke who doesn't trust packaged investments or shares and has no concept of metals investing - he just knows property and sticks with it, end of.

That kind of sums me up and my tenants. They're on housing benefit and as yet I haven't had my email from the lettings agent to confirm the rent transfer, which I normally have by the 6th of each money, so I suspect that there might be a problem this month.

However I do understand other investments, I just don't like them, sold the last of my shares just before Christmas last year and to be honest, shares have been a bad performer since the end of the '90s. Metals is a risky business and I really wouldn't want to invest in 'paper' metal, I'd like to physically have it because I don't believe that there is enough 'real' metal to back paper metal, but then that causes problems with storage and if you go for silver you get hammered for VAT.

Property is safe and reliable and easy to understand.

Graham_Devon

It's 76% of London net monthly earnings, according to that website.

However, further into the article, the problems all this is creating...

A report from the charity National Debtline reveals an 84% rise in the number of tenants seeking advice on rent arrears.

Graham_Devon

Turnbull2000 wrote: »

Those take home pay figures seem rather on the low side, or at least don't reflect double full-time earning households.

Take home figures seem low?

It's £32,650 AFTER tax.

What's low about that? You have to remember, not every household is a childless household both working full time jobs.

chewmylegoff

Turnbull2000 wrote: »

http://www.planetpropertyblog.co.uk/2011/10/12/how-high-can-they-go-london-rents-now-at-76-of-average-earnings/



Those take home pay figures seem rather on the low side, or at least don't reflect double full-time earning households.

well, about 4-5 months ago there was some stuff about how the average rent in london was about to exceed £1,000/month. here we go:

http://www.thisislondon.co.uk/standard/article-23952589-london-rents-to-smash-pound-1000-per-month-barrier.do

now it's £2,000 a month. wow! rents certainly are increasing at a mind boggling rate...

chewmylegoff

Plus this suggests national average rents much lower as well:
http://www.totallymoney.com/news/index.php/2011/01/average-uk-rent-falls/

Basically, the numbers in the article the OP has linked to are just a load of old testicles.

Turnbull2000

Aberdeenangarse wrote: »

Is Turnbull still living with his sister? Has she put his rent up? It's no wonder he's bitter!

Living with my sister sounds just as likely as the prospect of UK house prices and rents crashing - none. Keep dreaming sunshine :rotfl: