Independent says UK enjoys price rises, Telegraph praises BTL

Graham_Devon

HAMISH_MCTAVISH wrote: »

No, disposable income is linked to rent.

As rent is a primary need, expenditure on anything and everything else can and will be squeezed to pay it.

And given we live in a country where Sky just paid 3 billion pounds so the great unwashed masses can pay them excessive amounts of money to watch 22 idiots run around a muddy field for 90 minutes, there's clearly plenty of room to squeeze a whole lot more....:cool:

This is where you fall over every time.

People need to live aswell as pay the rent. Living includes some enjoyment.

Without it, the country goes down the pan, we see riots, crime etc.

I'm not saying that people unable to afford a sky subscription will start rioting, what I'm saying is you can only squeeze the enjoyment factor out of life so far before it becomes problematic for the country as people become very disincentivised.

You may think you will be able to sit pretty while everyone else gets life literally squeezed out of them and like good little peasants they will all do without everything to pay the rent, but it simply doesn't work that way.

Not to mention the knock on effect to the wider economy when you have sqeeuzed so many people the only thing they can afford is the absolute basics. Your cheering on a depression and mass unemployment. You just don't realise it as your eyes light up at the mere mention of a house price increase as you somehow figure you will do alright. When you lose your job as theres no one buying or using your services any longer, you may think twice about your greed.

Thrugelmir

As rent is a primary need, expenditure on anything and everything else can and will be squeezed to pay it.

Dream on............

If the rent is unaffordable then people will default on payment.

HAMISH_MCTAVISH

Thrugelmir wrote: »

If the rent is unaffordable then people will default on payment.

Then those people will be evicted. And make room for those willing to share accommodation, and pay higher rents.

There simply aren't enough houses for everyone that wants one to have one.

The market will continue to raise prices until enough people are forced to share that it finds equilibrium.

And given the current rates of near record high population increase and record low house building, there's still a very long way to go in that process yet....

Callie22

HAMISH_MCTAVISH wrote: »

Then those people will be evicted. And make room for those willing to share accommodation, and pay higher rents.

To where? If people can't afford rent they will default, if they get evicted they will go to the local council, and probably be rehoused in the private rented sector with LHA paying the rent. If more and more people can't afford the rent, then they will turn to benefits - in the next few years, I'd imagine that it's going to be the levels of LHA that will dictate maximum rents, and not 'what people are willing to pay'. I can already see it happening in my local area.

brit1234

HAMISH_MCTAVISH wrote: »

As rent is a primary need, expenditure on anything and everything else can and will be squeezed to pay it.

The term greedy landlord comes to mind or

shortchanged_2

Turnbull2000 wrote: »

Aye. There's lot of scope for substantial rent rises outside of London. Like mortgages, rents will likely grow to become dependent on duel incomes, with disposable income of tenants diminishing greatly.

Don't you think rents are already dependent on dual incomes?

Graham_Devon

shortchanged wrote: »

Don't you think rents are already dependent on dual incomes?

Not sure if this is the case, but Hamish has certainly talked about dual incomes in terms of dual couples, so four incomes.

Not sure if that's whats meant, as for many people,l like you say, dual income is already neccesary, and the same people will tell you this if you state housing is unaffordable for someone with a job.

Emy1501

Turnbull2000 wrote: »

Aye. There's lot of scope for substantial rent rises outside of London. Like mortgages, rents will likely grow to become dependent on duel incomes, with disposable income of tenants diminishing greatly.

Yep scope for decent rises for rental and mortgages and therefore a further squeeze on disposable income. All this will cause problem for growth as we are seeing at the moment. Housing costs rising above wage inflation will cause problems for government. Also many families are already dual earners and with few jobs and expensive child care costs this option may not add much for those who are not.

undetterred

Graham_Devon wrote: »

This is where you fall over every time.

People need to live aswell as pay the rent. Living includes some enjoyment.

Without it, the country goes down the pan, we see riots, crime etc.

I'm not saying that people unable to afford a sky subscription will start rioting, what I'm saying is you can only squeeze the enjoyment factor out of life so far before it becomes problematic for the country as people become very disincentivised.

You may think you will be able to sit pretty while everyone else gets life literally squeezed out of them and like good little peasants they will all do without everything to pay the rent, but it simply doesn't work that way.

Not to mention the knock on effect to the wider economy when you have sqeeuzed so many people the only thing they can afford is the absolute basics. Your cheering on a depression and mass unemployment. You just don't realise it as your eyes light up at the mere mention of a house price increase as you somehow figure you will do alright. When you lose your job as theres no one buying or using your services any longer, you may think twice about your greed.

Thats right Grayham,people need the car,mobile fone,clothes,nights on the !!!!,holidays........the list is endless.

Heaven forbid having to spend it on a roof above your head.

Remove the rose tint specs.

HAMISH_MCTAVISH

Emy1501 wrote: »

and therefore a further squeeze on disposable income.

For tenants.

But on the other side of that transaction, an equal and opposite increase in disposable income for landlords.

Rising rents do not take money out of society. Like any other transaction with two parties, money is transferred form one to the other. The money in society remains the same.