Rents Up Again

Really2

IronWolf wrote: »

Think you need to work on your maths, its about 2.4% annualised.

I thought about 2.5% was about 2.4%?

IronWolf

chucknorris wrote: »

1.02^12 = 1.268 = 2.68%

That's 2% compounded = 26.8%

0.2% compounded is 2.4%

Really2

joguest wrote: »

The fact that rents aren't rising at a faster rate than wage inflation means that it is having no effect on peoples' ability to pay the rent (unlike rising costs elsewhere)..

Any proof of that, the annualised guestimate was on today's figure, much lower than actual YOY. I think wage inflation is around 2%.

aurelieweill

A number of factors drive up demand for rented accommodation:

- increased minimum requirements for a deposit / down payment for house buyers
- less families eligible for a mortgage
- immigration
- consumer expectations that house prices in Britain will drop.

Rents will go up further for a while...

HAMISH_MCTAVISH

joguest wrote: »

According to LSL, rents are up a whopping ~6.5% over the period of the last three years, which is almost exactly equal to wage inflation in the economy .

Spinning like a top there jo...

6.5% in the last three years eh?

Let me guess, 4.1% in the last year, 2% or so the year before, and almost nothing the previous year.

So rent increases are accelerating.

Good to know.;)

wotsthat

joguest wrote: »

Fair point - the press release is quite balanced. It's the BBC and journalists from other news outlets that appear to like sensationalising the rising rent 'story'.

Although I've not seen anything in the media as sensational as this yet.......

joguest wrote: »

What is hilarious is that LSL are putting out 'press releases' that are depserately trying to ramp rental prices in the hope that it will instill fear in first-time buyers and increase their desire to purchase, and to appeal to the blind greed of speculators thinking of buying into BTL. The funny bit is that rents only rose by 0.2% despite their best attempts to talk up the rental market over the last few months.

What's even funnier is that all the desperate rent-seekers who were fantasizing at the prospect of an increase in unearned wealth aren't seeing their fantasy come true.

joguest

wotsthat wrote: »

Although I've not seen anything in the media as sensational as this yet.......

Actually, I retract my latter statement about LSL. The first page of their report is balanced and just sticks to the facts (i.e. rents rising in London, but going down in other regions, etc), but then it goes on to ramp property 'investment' in no uncertain terms (just like the commentary in all their other reports):

Rents may be rising steadily for
many tenants at present, but growing rental income is
attracting investors to the sector. Property prices are below
their historic peaks, yields are strong, and it is a great time for

many landlords to enter the market or grow their portfolios.

If that isn't ramping then I don't know what is. Property prices are below their historic peaks???!!!! - !!!!!! does that mean - they're certainly below the 2007 peak in nominal terms (as a UK average), but on other metrics, e.g. price-to-earnings and rental yields, prices look overpriced compared to historic averages. Yields are strong???? - no they're not.

This is the killer:

and it is a great time for
many landlords to enter the market or grow their portfolios

That's nothing short of completely prejudiced ramping. There's nothing balanced about it.

joguest

HAMISH_MCTAVISH wrote: »

Spinning like a top there jo...

6.5% in the last three years eh?

Let me guess, 4.1% in the last year, 2% or so the year before, and almost nothing the previous year.

So rent increases are accelerating.

Good to know.;)

Rents only go up! To infinity and beyond!

wotsthat

joguest wrote: »

Actually, I retract my latter statement about LSL. The first page of their report is balanced and just sticks to the facts (i.e. rents rising in London, but going down in other regions, etc), but then it goes on to ramp property 'investment' in no uncertain terms (just like the commentary in all their other reports):

Rents may be rising steadily for
many tenants at present, but growing rental income is
attracting investors to the sector. Property prices are below
their historic peaks, yields are strong, and it is a great time for

many landlords to enter the market or grow their portfolios.

If that isn't ramping then I don't know what is. Property prices are below their historic peaks???!!!! - !!!!!! does that mean - they're certainly below the 2007 peak in nominal terms (as a UK average), but on other metrics, e.g. price-to-earnings and rental yields, prices look overpriced compared to historic averages. Yields are strong???? - no they're not.

This is the killer:

and it is a great time for
many landlords to enter the market or grow their portfolios

That's nothing short of completely prejudiced ramping. There's nothing balanced about it.

Of course, one always needs to take a pinch of salt with anything where the accusation "well they would say that wouldn't they" can be made.

Rather than ramping though I'd say that, based on the figures, BTL looks like a decent bet for the future. I'd also bet some of the reluctant landlords of the last few years can't believe their luck at the moment.

IveSeenTheLight

IronWolf wrote: »

That's 2% compounded = 26.8%

0.2% compounded is 2.4%

Pedantically it's 2.42657679454032%

You guys are debating a 0.073% (rounding) difference.

I'd say they were "about" the same