MSE News: Heavy competition sees rents soar

breadlinebetty

Rising rents was bound to happen - it is inevitable!

rickbonar

HAMISH_MCTAVISH wrote: »

Buyers can't get mortgages, there is no shortage of buyers who could afford mortgage payments. After all, they're already lower than rent in 95% of the UK.

Falling house prices won't make any meaningful change to the number of mortgages issued.

SO the only way the market will be "opened to buyers" is a significant increase in lending.



Why?

House prices are not the reason for mortgages being hard to obtain now.

Hamish .. what then is the reason why mortgages are so hard to get if it isn't the house prices being well in excess of average earnings repayment projections?

Say the banks use as a base calculation average house price against average earnings (also time span of the mortgage comes into it).

So unless there is a relative increase the average wage the situation will continue unless there is a relative drop in house prices.

Of course the wealthy and BTL landlords may trade amongst themselves.

barnaby-bear

HAMISH_MCTAVISH wrote: »

No, because most people can't get mortgages nowadays thanks to mortgage rationing.

That's one of the main reasons why demand for rentals is so high, and the price of rent is soaring.

I agree, the cost of the repayments wouldn't make the mortgage unavailable - it's getting the mortgage. Earn £30k, a 3xsalary mortgage of £90k at 5% costs you £550 ish a month repayment..... a rental credit check will let you on the same salary pay £1200 in rent..... plenty of people are paying way more in rent than the mortgage to buy the same place, making it quite lucrative for some landlords....

jamie11

I have no answer to this.

I was around and paying my mortgage when 'Black Monday' happened, repayment charges briefly reached 15%, I was lucky that I was in a position to stay in front, you would think that things have got easier since then but the reality is we are all trapped into a spiral. Nothing changes. The faceless money men of the world have a lot to answer for.

MobileSaver

JeffMinter wrote: »

Europeans always wonder why the British (and Americans) are so obsessed with owning their own house. After all, most Europeans for generations have rented for life.

You just made that up didn't you?

Spain, Italy, Belgium, Hungary and Bulgaria all have higher home-ownership than the UK, with Bulgaria having 97 per cent of the population living in privately owned and owner-occupied homes!

UnitedSum

The difference between the UK and other nations in western Europe that are more of a renting nation is that those nations actually have laws in place to give tenants some degree of security in longevity, making it more attractive for people to happily live in a property and look after it like a home. It also promotes some semblance of a community spirit.

nollag2006

MobileSaver wrote: »

You just made that up didn't you?

Spain, Italy, Belgium, Hungary and Bulgaria all have higher home-ownership than the UK, with Bulgaria having 97 per cent of the population living in privately owned and owner-occupied homes!

Why spoil a good story with the truth??