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Debate House Prices
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Independent says UK enjoys price rises, Telegraph praises BTL
Comments
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HAMISH_MCTAVISH wrote: »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.
So the ordinary man gets poorer and the wealthy get even richer. I wonder what the btl landlord does with extra money he gets.0 -
Thrugelmir wrote: »Surely rent is linked to disposable income not inflation.
Disposable income is falling for many. So how can rents be increased without exception.
LL's with high LTV's are going to be squeezed in the years to come.
I would have thought "disposable income" is income after deducting, amongst other things, housing cost.
Generally speaking, over the long term I think you would expect rent to increase roughly in line with inflation (as you would expect wages to rise roughly in line with inflation). That may not have happened in the last few years but it is unlikely to be like this forever.0 -
So the ordinary man gets poorer and the wealthy get even richer. I wonder what the btl landlord does with extra money he gets.
Ever since the onset of the credit crunch, many ordinary people have been forced to rent out their house when they move as they've been unable to sell it.
So increasingly, BTL landlords are the "ordinary man"....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Ever since the onset of the credit crunch, many ordinary people have been forced to rent out their house when they move as they've been unable to sell it.
So increasingly, BTL landlords are the "ordinary man"....
Sorry your talking nonsense now. The market of accidental landlords is small. The vast majority of BTL are owned by the wealthy. Rising rents as with rising house prices at above wage inflation is not positive in the long run and that is something even the government admits.0 -
The market of accidental landlords is small.
Wrong again.
Accidental landlords now make up almost half the private rental market in the UK....
Read more: http://www.metro.co.uk/money/21628-rise-of-the-accidental-landlord#ixzz1xyBT70THAlmost half of Britain's growing army of private landlords ended up renting out property by chance - rather than deliberately entering the buy-to-let market.
Research by the National Landlords Association has shown that 43% of its members did not buy the first property they let out with the intention of joining the rental market.
Instead, 21% of those surveyed said their first residential letting property was one they already owned and subsequently decided to let out rather than sell.
Meanwhile, 9% inherited their first rental property and 9.5% said they stumbled into being a landlord through letting out part of a property, changing their mind on a purchase for themselves and letting it out, inheriting a home with sitting tenants, or letting out premises above a shop or offices.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Thrugelmir wrote: »Surely rent is linked to disposable income not inflation.
Disposable income is falling for many. So how can rents be increased without exception.
LL's with high LTV's are going to be squeezed in the years to come.
Another Rule of 51 certainty from Thrugelmire.
As has been stated by others, surely rent is more closely linked to total wage inflation.
It is also linked supply/demand as everything else.
Our rental is for the first time now being occupied by 2 young singles combining their wages. Perhaps they or others like them would prefer to rent separately but the scarcity of property and the prices that can therefore be charged seem to point to more and more people sharing to "compete" against other renters especially for the best properties.
This of course, if it is a growing trend, will allow for rental increases, on average, above average wage inflation.
(Lots of use of the word "average" to try to get across that I'm aware not everyone is sharing etc as some will try to twist this post)0 -
HAMISH_MCTAVISH wrote: »Wrong again.
Accidental landlords now make up almost half the private rental market in the UK....
We're an example.
Tried to sell and rent at the same time. Rental won the race and haven't tried to sell since. Have realised just what a good investment it is, and continues to be, for us. Approaching £50k rent so far.0 -
JonnyBravo wrote: »As has been stated by others, surely rent is more closely linked to total wage inflation.
What's total wage inflation?0 -
JonnyBravo wrote: »Perhaps they or others like them would prefer to rent separately but the scarcity of property and the prices that can therefore be charged seem to point to more and more people sharing to "compete" against other renters especially for the best properties.
This of course, if it is a growing trend, will allow for rental increases, on average, above average wage inflation.
Absolutely correct.
It's the inevitable result of house building not being at the required level to keep up with population growth.
Prices will rise until enough people are forced to share that equilibrium is restored to the market.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Graham_Devon wrote: »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.
What are the abolute basics? For example is a Sky TV subsciption or Gym membership a basic need? Is a mobile?Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0
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