London rents drop by 10%

missjames

K.Tarshes wrote: »

London is becoming more and more full of immigrants. They very rarely have much money. They are usually on low income and rents are already too high in relation to what the majority can afford. Something has got to give.

They will just have to share rooms, more and more little 2 bed flats have about 16 low income workers in sharing rent. All the floor space is taken up by bodies sleeping. Even then most of their income is taken up by rent.

chucky

chucknorris wrote: »

I have long standing tenants in those 4 flats chucky, about 8, 5, 3 and 2 years, I have (want) to balance losing a good tenant against ensuring that I don't fall too far below the market rent. At the time of posting (last July) I had already notified my tenants of last summers increase. But there will be a more significant upward adjustment this summer for sure, when I said ‘soon’ last July I was thinking long term so soon I actually meant this summer.


I’ve just taken a peep at rents in that block, there was only one available, which was a 3 bed for £2,060/month, which seems a very high rent to me and probably optimistically priced, also it has just been refurbished and furnished to let out to the top of the market. I’ll have better look later this week but it appears that I have good scope to increase the rents this summer. The interesting thing was that the 3 bed was actually the same layout of one of my two bed flats, they have moved the kitchen into the lounge and converted the kitchen into a 3rd bedroom.

That's good to hear Chuck. Always good news that investments are providing a good return.

chucknorris

purch wrote: »

I did notice the other week that an apartment in a block @Hampton Court where I have properties in is being marketed at £ 2700 pm, when I have one very similar but nicer rented for £ 2250 pm

On the other hand it did only cost me £38K at auction in 1991 so I think I've had me moneys worth.

Similar to me, I have 3 flats in that block which I paid £58,500 (1991), £68,000 (1999, needed gutting though) and £82,000 (1999).

theEnd

My own experience is that London rents hardly moved in the 15 years I was renting and they weren't that expensive to start with.

chucknorris

theEnd wrote: »

My own experience is that London rents hardly moved in the 15 years I was renting and they weren't that expensive to start with.

Rents haven't moved in 15 years! Then I take it that you are Bruce Spanner from HPI? Surely there can't be two of you that have such luck at finding rents so cheap.


Lets see 15 years ago in 1999, yes I can remember because I bought 2 flats in that year and the initial rent was £866/month (£200/week), that one now rents for £1,220/month, so it has gone up over 40% in that time (and due a significant rise this summer).

theEnd

chucknorris wrote: »

Rents haven't moved in 15 years! Then I take it that you are Bruce Spanner from HPI? Surely there can't be two of you that have such luck at finding rents so cheap.


Lets see 15 years ago in 1999, yes I can remember because I bought 2 flats in that year and the initial rent was £866/month (£200/week), that one now rents for £1,220/month, so it has gone up over 40% in that time (and due a significant rise this summer).

The ONS says London +11% in 8 years.
http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-304792

What's inflation in that time? 20-25%?

Doesn't look like a housing shortage to me.

chucky

theEnd wrote: »

The ONS says London +11% in 8 years.
http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-304792

What's inflation in that time? 20-25%?

Doesn't look like a housing shortage to me.

That's interesting. Either you and the ONS are right or Chewmylegoff is wrong when he posted the original article.

purch

There is such a lot of drivel posted on here.

Everything the rent for all my stuff in London has risen by at least 50% since the start of the century. Some by a lot more.

wotsthat

chucknorris wrote: »

Lets see 15 years ago in 1999, yes I can remember because I bought 2 flats in that year and the initial rent was £866/month (£200/week), that one now rents for £1,220/month, so it has gone up over 40% in that time (and due a significant rise this summer).

You ought to start posting in the nice person's thread - that's only a 2.3% increase per year and represents a real terms decline.

chucknorris

theEnd wrote: »

The ONS says London +11% in 8 years.
http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-304792

What's inflation in that time? 20-25%?

Doesn't look like a housing shortage to me.

But you have now moved from YOUR original timescale of 15 years to a timescale that just takes in the downturn, did you really think that would go unnoticed? If we stick with YOUR revised timescale of 8 years, how does rent compare to mortgage costs?