Rents Rising Again

HAMISH_MCTAVISH

Rents are back on the rise "unseasonably early" this year, lettings agents said today.

The typical rent rose by 0.1% in January to £712 a month in England and Wales, the first month-on-month rise since October, according to LSL Property Services, which owns chains Your Move and Reeds Rains.

The market saw a boom last year as trapped renters were unable to raise the deposits needed to get on the property ladder, although rents eased back slightly towards the end of 2011.

David Newnes, director of LSL Property Services, predicts more rent increases as housing market transactions remain low.

He says: "The rental market burst back into life unseasonably early in January, with tenants on the move trying to take advantage of what is usually a quieter period for the rental market.

"The depth of the underlying demand sustained a higher level of competition for rental property during the Christmas period, preventing more severe falls in rents than we'd normally see during the period."

He adds: "Mortgage lending has shown signs of improving in recent months, but transactions remain at almost half their historic levels, and the increasing dependency on rental accommodation will drive further rent rises over the long-term."

http://www.moneysavingexpert.com/news/mortgages/2012/02/rents-are-back-on-the-rise?utm_source=forum&utm_medium=sidebar&utm_campaign=box

So after the expected winter dip, rents are back on the rise.

Late payments and arrears continue to hover around the 10% mark, not great, but still lower than last year. And of course serious arrears rather than just late payments are a tiny fraction of that amount.

AndyGuil

Looks like the housing market is deteriating. This does not bode well for future house sales.

IveSeenTheLight

HAMISH_MCTAVISH wrote: »

http://www.moneysavingexpert.com/news/mortgages/2012/02/rents-are-back-on-the-rise?utm_source=forum&utm_medium=sidebar&utm_campaign=box

So after the expected winter dip, rents are back on the rise.

Late payments and arrears continue to hover around the 10% mark, not great, but still lower than last year. And of course serious arrears rather than just late payments are a tiny fraction of that amount.

Come now Hamish.
A 0.1% rise is not worth creating the thread for.
It equates (on average) to an extra 71p per month.

Your time spent writing the thread was probably worth more than that.

CRASH_BANG_WALLOP

dude a tiny 0.1% and you get your kickers wet and then man you dismiss late payments/arrears (10%!!) only as not great

HAMISH_MCTAVISH

AndyGuil wrote: »

Looks like the housing market is deteriating. .

Looks like the housing market is improving for landlords...;)

AndyGuil

HAMISH_MCTAVISH wrote: »

Looks like the housing market is improving for landlords...;)

A catch 22. It will be the demise of the property value in the end.

HAMISH_MCTAVISH

IveSeenTheLight wrote: »

A 0.1% rise is not worth creating the thread for.
.

Actually, on a day where we've had a thread discussing the fact that the housing benefits changes are already causing large numbers of evictions, the fact rents are rising at all, let alone so soon in the year, is well worth discussing.

Because this is NOT what the bears were predicting would happen.

Don't forget those changes to HB have been in place for a year for new applicants already, and rents rose strongly last year. Now they're rising again, despite the changes.

Jegersmart

My rent went up by 2.8% this year. Still cheap though imho

HAMISH_MCTAVISH

AndyGuil wrote: »

A catch 22. It will be the demise of the property value in the end.

On the contrary, higher rents attract more investment capital, pushing up prices.

A higher yielding asset is worth more than a lower yielding one.

AndyGuil

HAMISH_MCTAVISH wrote: »

On the contrary, higher rents attract more investment capital, pushing up prices.

A higher yielding asset is worth more than a lower yielding one.

That in itself constrains the market creating a bubble. Unsustainable and severely vulnerable to external changes to the market.

HAMISH_MCTAVISH

AndyGuil wrote: »

That in itself constrains the market creating a bubble. Unsustainable and severely vulnerable to external changes to the market.

Once again, you're wrong.

BTL mortgages have been tightened up to such an extent with high deposit and income requirements that they're now pretty much the safest form of lending there is.

What is absolutely the case is that BTL is expanding from just starter flats into the whole market, and far fewer people will own houses in the future.

Wealth is being consolidated in the hands of fewer people that are getting richer, and the owner occupation percentages are falling rapidly as a generation is forced to enrich their landlords instead of themselves.