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Tenants faced rising rents again in May, LSL says
OffGridLiving
Posts: 585 Forumite
I just saw this on the BBC, another pressure on inflation.
http://www.bbc.co.uk/news/business-22991939
The cost of renting a home in England and Wales rose again in May as tenants faced charges that were 3.5% higher than a year earlier, a survey has suggested.
Rents rose by 0.1% between April and May, although this was a smaller increase than during recent months.
LSL Property Services said that this meant the average rent was £737 a month - the third highest level on record.
The pace of rent changes varied in different regions, the data showed.
Tenants faced rent rises of 7.2% on average in London over the past year, with costs up by 5.2% in Wales, and up 4% in the north east of England.
The south west of England saw no change compared with a year ago - the only region not to see costs increase.
Demand
The latest month-on-month rise would have been higher, LSL said, had there not been a surge in activity in the housing market.
Figures published on Thursday by the Council of Mortgage Lenders (CML) showed that UK mortgage lending leapt to its highest monthly level since October 2008 in May.
This was up 21% on the previous month and 17% higher than in May last year, assisted by government schemes to boost house buying.
Meanwhile, the latest home sales figures from HM Revenue and Customs show that there were 89,050 transactions in the UK in May, compared with 75,350 in the same month a year earlier.
"Looking further ahead, sustaining the increase in new buyers will depend on how many tenants are able to build big enough deposits to get a mortgage," said David Newnes, director of LSL, which owns lettings agents Your Move and Reeds Rains.
"With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable - which will keep demand for rented accommodation high."
http://www.bbc.co.uk/news/business-22991939
The cost of renting a home in England and Wales rose again in May as tenants faced charges that were 3.5% higher than a year earlier, a survey has suggested.
Rents rose by 0.1% between April and May, although this was a smaller increase than during recent months.
LSL Property Services said that this meant the average rent was £737 a month - the third highest level on record.
The pace of rent changes varied in different regions, the data showed.
Tenants faced rent rises of 7.2% on average in London over the past year, with costs up by 5.2% in Wales, and up 4% in the north east of England.
The south west of England saw no change compared with a year ago - the only region not to see costs increase.
Demand
The latest month-on-month rise would have been higher, LSL said, had there not been a surge in activity in the housing market.
Figures published on Thursday by the Council of Mortgage Lenders (CML) showed that UK mortgage lending leapt to its highest monthly level since October 2008 in May.
This was up 21% on the previous month and 17% higher than in May last year, assisted by government schemes to boost house buying.
Meanwhile, the latest home sales figures from HM Revenue and Customs show that there were 89,050 transactions in the UK in May, compared with 75,350 in the same month a year earlier.
"Looking further ahead, sustaining the increase in new buyers will depend on how many tenants are able to build big enough deposits to get a mortgage," said David Newnes, director of LSL, which owns lettings agents Your Move and Reeds Rains.
"With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable - which will keep demand for rented accommodation high."
0
Comments
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if the last average rent is the third highest level ever; then it used to be higher so now it is lower
or am I missing something?0 -
am I missing something?
Yes.
Seasonality.
It has reached a new record high each of the last two years. As it's currently up year-on-year, it looks on track to do so again this year.“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 -
It seems rents are now going up with inflation so is this really news?
Potatoes Increase In Price At The Same Rate As Other Stuff
Pasta Increases At A Slightly Faster Rate, Rice Unchanged0 -
It seems rents are now going up with inflation so is this really news?
Potatoes Increase In Price At The Same Rate As Other Stuff
Pasta Increases At A Slightly Faster Rate, Rice Unchanged
Potatoes have shot up this year here as have a lot root stuff due to the weather, heavy rain. It will interesting to see if they actually drop.
Wheat has gone up too, hence pasta increase? You have to watch out for frost with spaghetti apparently.
http://www.youtube.com/watch?v=27ugSKW4-QQ
I am surprised by rice I would have thought demand grows continually.
There was an investment opportunity recently for new paddy fields in Sierra Leone, using organic sea shells to neutralise the soil. think I will give it a miss.;)"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
It seems rents are now going up with inflation so is this really news?
Potatoes Increase In Price At The Same Rate As Other Stuff
Pasta Increases At A Slightly Faster Rate, Rice Unchanged
They're not going up in line with inflation though.
Tenants faced rent rises of 7.2% on average in London over the past year, with costs up by 5.2% in Wales, and up 4% in the north east of England.0 -
More people are choosing to live in the UK especially London but few properties are being build.
Solutions suggest themselves.0 -
More people are choosing to live in the UK especially London but few properties are being build.
Solutions suggest themselves.
One would be to create demand in other parts of the country.
Concreting over the SE brings with it a whole host of issues and accommodation, itself, is only one of them."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »One would be to create demand in other parts of the country.
Concreting over the SE brings with it a whole host of issues and accommodation, itself, is only one of them.
apparently rents are rising in the provinces too0 -
apparently rents are rising in the provinces too
True, form a much lower base maybe.
Why were the inner London boroughs looking to ship tenants to places like Stoke?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »True, form a much lower base maybe.
Why were the inner London boroughs looking to ship tenants to places like Stoke?
I've no idea what Stoke has done to deserve people from Inner London but presumably that is a good way of increasing demand in the provinces and reducing demand in London.0
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