Home ownership back to 1988 levels.....

ukcarper

Graham_Devon wrote: »

Yes, correct.

But no one is talking about earnings to LTV ratios. Hamish is solely talking about deposit requirements and rationing.

I've had the earnings ratio arguement with him before now, and from what I could gather, he doesn't believe in such a thing as everyones earnings and spending is different.

I agree with that to some extent but lending must be at an affordable level earnings ratios are a bit crude.

IveSeenTheLight

homelessskilledworker wrote: »

You cannot continue with a system where people and families are trying to settle with them moving on every six months or allways with the threat they might get 2 months notice at anytime.

Why not sign a longer tenancy then?
I've just agreed to lease one of my properties with a 2 year lease.

IveSeenTheLight

homelessskilledworker wrote: »

Have a internet site called noyourrentalrights.co.uk, do not let landlords get away with anything that is not spot on and 100% correct. And while tenants are making the life of the dishonest and not so good landlord hell they could also be fighting for better housing/rental policy.

An internet site where those in rental know ther rights, more so those that actuallu use their working wage to pay for it.

Like a post pointed out this morning, there are now only 66% od people in OO, there must be millions who are now in rented, and many pi**ed off with the crap regulation.

I guess the website you are looking for should be called knowyourrentalrights.co.uk

There is a good website called http://www.landlordzone.co.uk/ which caters for both landlords and tenants.
It has forums for discussion, includes important legislative documents / forms and has sections for Landlord / Tenancy Laws

They cover many thing such as: -
What is a Tenancy?
Fixed Term & Periodic Tenancies
What is a Licence?
Occupier with Basic Protection - Common Law Tenancy
Long Tenancies or Leases
Multiple Tenants
Creating a Tenancy
Tenancy Agreement or Lease?
What kind of Residential Tenancy?
The Protected (Rent Act) Tenancy - tenancies entered into before 15 January 1989.
The Assured Tenancy - introduced by the Housing Act 1988.
The Assured Tenancy - Housing Act 1988
The Assured Shorthold Tenancy - introduced in 1988 but amended by the 1996 Housing Act.
The Common Law Tenancy - as explained above, where landlord live in the same building
The Rent Act Tenancy

The Assured Tenancy

The Assured Shorthold Tenancy

Point to Watch for Landlords:


The Legal Aspects of Rental Property
Tenancy Agreements, Leases and Contracts

Download FREE forms and notices - tenancy agreements you can purchase for this site from our recognised suppliers.
General Law - common to all Rental Property

General legal content which is common to all types of tenancy.
Residential (Housing) Tenancies

Information on tenancies which are specific to residential lettings.
Commercial (Business) Tenancies

Information on tenancies which are specific to commercial (business) lettings.
Agricultural (Farm & Land) Tenancies

Information on tenancies which are specific to Agricultural (farm and land) lettings.
Lodgers and Licences

Information about lettings for lodgers and where the occupier holds a license, as opposed to a full tenancy.
Holiday Lettings

Information on the legal aspects of holiday let properties
Long Leaseholds and Commonholds

Information specific to long-leasehold (sometimes called low-rent) tenancies
Regulations - Rental Property

Rules and regulations (statutory rules) concerning all types of rental property.

IveSeenTheLight

homelessskilledworker wrote: »

An internet site where those in rental know ther rights, more so those that actuallu use their working wage to pay for it.

You can also check out

Assured and Assured Shorthold Tenancies: - A guide for Tenants
http://www.communities.gov.uk/documents/housing/pdf/138289.pdf


Assured and Assured Shorthold Tenancies: - A guide for Landlords
http://www.communities.gov.uk/documents/housing/pdf/138286.pdf

ukcarper

Graham_Devon wrote: »

Yes, correct.

But no one is talking about earnings to LTV ratios. Hamish is solely talking about deposit requirements and rationing.

I've had the earnings ratio arguement with him before now, and from what I could gather, he doesn't believe in such a thing as everyones earnings and spending is different.

This is how I think it works and why some people are never going to be happy.

There are enough houses a for a certain percentage of the population to buy lets say 70%, the price of property is basically determined by the amount that 70% can borrow.

Earning multiples is what the loans have historically been based on so if that figure goes from 3x to 4x the prices you have to pay for a house will be higher but it both cases it will be the same people who can’t buy.

I know this is very simple and there are other factors that effect the price.

Although earnings multiples are a simple way of working out affordability I don’t think they are very good. Lets take 2 people one who smokes, has a couple of bottles of wine a week and sky this could easily cost him £175 a month, someone who has none of those could pay for another £30k on a 25 year mortgage at 5%.

wotsthat

Graham_Devon wrote: »

The problem with matching funding to high prices is it just pushes prices higher (which is a big reason Hamish wants to see funding increase). You have the same problem all over again within a couple of years. So you have to increase funding again...

Mortgage lending has an effect on price for sure.

However, isn't the main pricing factor in the UK a supply that doesn't meet demand.

Loosening mortgage lending would have the effect of allowing people to buy a house at the current market price. In the majority of cases this would have the effect of reducing housing costs - we all agree this is a good thing.

Constricted mortgage lending will put a downward pressure on prices but these lower prices will continue to be inacessible to owner occupiers. BTL's get houses at lower prices and improve yields because there's more demand for rental which will negate the constricted mortgage availability.

More houses are needed but the advantage of better lending criteria would mean that the proportion of owner occupiers may increase whilst we wait (don't hold your breath) for building to increase.

shortchanged_2

ukcarper wrote: »

But if the arguments that high earnings to loan ratios were the cause of high prices if you maintain them at reasonable levels prices wouldn't increase.

Yes they would. Just more in line with wage inflation.

ukcarper

shortchanged wrote: »

Yes they would. Just more in line with wage inflation.

I would have thought that went without saying

shortchanged_2

ukcarper wrote: »

I would have thought that went without saying

Well wouldn't that be the best case scenario?

POPPYOSCAR

homelessskilledworker wrote: »

On the one hand some posters point out that those who rent are bottom feeders, then they go on to say they will "just put the rent up", if many are strugling today there is every chance they will be struggling even more tommorrow.

I am not sure how many of the posters on this board run a real business(BTL not included), but working out a cashflow plan or a business plan on a saturday evening, it is usually the last option to increase prices, quite simply your business will then fail if you do so. For some reason BTL types seem to think the simple answer is to "I will just increase the rent mate".

People on this board have a tidy little path of how things will happen in the next few years, very few take politically motivated decisions into account or how much more can people be squeezed and by how much.

For example I wonder how many of you predicted the banking crisis in 2007, and more importantly I wonder how many of you think the problem has REALLY been resolved.

I would not say I predicted the banking crisis as such but I have been thinking for a good few years now that we could not continue as we were going, and that a lot of people were living well beyond their means on borrowed money, the country included!

I know it is not easy for FTBs with house prices the way they are but I do know of more than one couple who are renting, paying double what a mortgage would cost them. They continually bleat about how they can't save for a deposit because they can't afford it, but still have their meals out, holidays and nice clothes etc.