MSE News: Rents are back on the rise

nollag2006

snooping_around wrote: »

the only way that will suit you.

Please do try to use full sentences that make sense.

There's a good chap.

snooping_around

...........

HAMISH_MCTAVISH

snooping_around wrote: »

Here are some other ways to reduce rents

- reduce housing benefits, not sure what proportion of the rental market housing benefit claimants have but im sure its a significant proportion

Around 25% of private renters claim housing benefits. The reduction in housing benefits for new claimants started a year ago, and had no impact.

The reduction for existing claimants has also now started, yet rents are rising again.

London councils have such little faith in the reductions driving down rents, they are now planning to send claimants to live in Hull. That tells you all you need to know.

- build more affordable housing, which will reduce property prices and therefore reduce rents

True. This would reduce prices and rents.

But builders won't build what they can't sell, and they can't sell or build more than they are now unless mortgage funding increases.

- increase tax on BTL properties, though maybe some landlords will try and pass the tax onto the tenants. Overall i think this will bring rents down

Evidence from elsewhere shows that tax increases tend to be passed through to end users of products and services. This would end up as a "tenant tax".

brit1234

HAMISH_MCTAVISH wrote: »

The reduction for existing claimants has also now started, yet rents are rising again.

Hamish you very well know these rent figures are from the month before the HB changes. Stop distorting the picture with flawed spin. You may have some credibility in what you say in next months figures if rents rise not these ones.

HAMISH_MCTAVISH

brit1234 wrote: »

Hamish you very well know these rent figures are from the month before the HB changes. Stop distorting the picture with flawed spin. You may have some credibility in what you say in next months figures if rents rise not these ones.

Wrong again Brit, these are the January figures and it's in January that the changes started.

gingeralan

nollag2006 wrote: »

I find the 0.1% rise in rents a little hard to believe. It seems very light

I have a number of BTLs in South and West London, and the rents in all properties have risen between 5-10% in each of the past two years. I intend to put the rents up a similar amount again this year.

Typical attitude of the evil LL's. Your costs have not increased by that amount so why increase your charges? I hope that this reduction in housing benefit hits you hard!

HAMISH_MCTAVISH

gingeralan wrote: »

Typical attitude of the evil LL's. Your costs have not increased by that amount so why increase your charges? I hope that this reduction in housing his you hard!

As so many of the pro-crash posters on here like to remind us, being a landlord is a business that requires the assumption of risk, can from time to time incur significant unexpected costs, and requires the investment of time and money keeping your property up to the relevant standards.

So you really shouldn't moan if landlords raise the rents when market conditions allow, so as to make a profit and even put some extra money away to cover contingencies.

They're businesspeople, not charities.

gingeralan

HAMISH_MCTAVISH wrote: »

As so many of the pro-crash posters on here like to remind us, being a landlord is a business that requires the assumption of risk, can from time to time incur significant unexpected costs, and requires the investment of time and money keeping your property up to the relevant standards.

So you really shouldn't moan if landlords raise the rents when market conditions allow, so as to make a profit and even put some extra money away to cover contingencies.

They're businesspeople, not charities.

What conditions allow this now??

We have never had a tighter sqeeze on incomes for decades, yet you try and tell me these people provide a service???

I would wager that the majority of LL's do not treat it as a business in the traditional sense, most seem to think maintenance issues are just the tennant being a nuisance. Many treat the cash turnover as their own money and do not maintain this contingency you refer to. So when something goes wrong it is not sorted immediately as it should be (Heating for example).

I think you are one of these people who have a funny idea how the world works. Shelter is a very important part of life, I am sure you will agree, yet LL's think that they can hold families over a barrel with inflation busting increases. I thought it was bad that the railways were increasing prices by the level they are. But I now know that there are many more selfish people out there than I thought.

HAMISH_MCTAVISH

gingeralan wrote: »

What conditions allow this now??
.

Supply and demand.

Same as always.....

gingeralan

HAMISH_MCTAVISH wrote: »

Supply and demand.

Same as always.....

Rubbish!

There are lots of empty places with to let signs outside in pretty much every city I have been to recently, so I am not accepting that a an argument.

It is purely greed, interest rates at historic lows, if the LL's had spent a significant amount on improvements I may think it is justifiable (only just) to increase rents.

I have noticed you seem obsessed with this idea of lack of supply both in rental and sale markets. I think you are ill informed and perhaps over exposed to this investment vehicle and this is why you feel the need to consistently bang the drum claiming all this nonsense.