London rents drop by 10%

chucknorris

wotsthat wrote: »

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.

It represents a very good return because my rental profit was good in 1999 when my mortgage rate was much higher, current lower mortgage rates mean higher profits, and as I said previously in the thread my rents need to be increased to catch up with the market, this again equates to higher profits.


EDIT: As I said earlier 'due a significant rise this summer'

theEnd

chucknorris wrote: »

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?

I'm pointing out the years that numbers exist for.

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.

I was renting around SW London from 98-13. Similar flats in slightly different places. Went from paying £950/month in Streatham in 98 to 1050/month in Balham in 13 (with a few in between), which for me would represent no change nominally and a huge drop in real terms.

chucknorris

theEnd wrote: »

I'm pointing out the years that numbers exist for.



I was renting around SW London from 98-13. Similar flats in slightly different places. Went from paying £950/month in Streatham in 98 to 1050/month in Balham in 13 (with a few in between), which for me would represent no change nominally and a huge drop in real terms.

Well like I said, my rents have gone up over 40% in those 15 years (and as I also stated I have fallen behind the market) and I would say that that was more representative of the market than your example.

chucky

purch wrote: »

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.

Exactly...

cells

Not my experience of inner london. Flats that were going for 1200-1300pm in 2007 are now 1700-1900 or about 50% rent price inflation over 7 years. Homes in outer london that were on at 1000pm are now 1400-1450 now giving 40-45% rent inflation

that inner London rents are higher nakes some sense as the stats show that inner London population has gone up more than outer London

cells

London approx

+2000 people per week
+300 homes per week

---

Roughly 750 of those people can be put into the 300 homes, the remainder need to fight for the private rental market


About 11,000 rentals come onto the market and about 26.5k people need rentals a week. However this week 26.5k plus the 1.25k excess from population increase need to be put into the private rentals.

in simple terms demand has gone from 26.5k persons looking for a home last week to 27.75k people looking for a home this week while rentals stayed the same. The result is that these people will have to live 4.7% more dense this year rhab last year but they dont want to do that so will try to bid themselves out of living with strangers.


Few people know or understand this.
London went from under 2.0 persons per house in the early 1990s to now over 2.4 persons per house.

And as long as the population growth exceeds house building londoners will have to live more and more dense and that will drive both rents and prices higher and higher