ONS admits it "badly underestimated" rent inflation for years

purch

Tickles will only accept something to be 100% accurate if he hears it from that weirdo on his favourite YouTube channel.

Loughton_Monkey

Well spotted, Hamish.

But let's not be too harsh on the well meaning and hard working men & women at the ONS. They're only sub-human. Let's have no recriminations.

Instead, let's just celebrate the fact that we don't need to worry (as much as we have been) about how hard-pressed landlords are putting food on the table. Seems they are OK after all....

.... large rent increases all round.....:rotfl:

Physics

Per year, what is the old vs new estimates of rent inflation?

bigheadxx

More masking of impending deflation.

theEnd

I rented in London from 98-13 and rents hardly moved at all, so the original ONS numbers looked fairly accurate to me.

The real question is how they were allowed to use this figure for inflation, but a much higher number for the imputed rent portion of GDP. Feels like deliberate fraud to me.

westernpromise

gazter wrote: »

Devoted ex Tory member. Are you implying that yougov is biased for or against the tories? I cant quite work that out.

ITYF Peter Kellner of YouGov is a Labour supporter.

ukcarper

theEnd wrote: »

I rented in London from 98-13 and rents hardly moved at all, so the original ONS numbers looked fairly accurate to me.

The real question is how they were allowed to use this figure for inflation, but a much higher number for the imputed rent portion of GDP. Feels like deliberate fraud to me.

Considering average earnings have increased by over 50% in that time, if that's the case what is all the complaining about the cost of renting.

westernpromise

theEnd wrote: »

I rented in London from 98-13 and rents hardly moved at all, so the original ONS numbers looked fairly accurate to me.

The real question is how they were allowed to use this figure for inflation, but a much higher number for the imputed rent portion of GDP. Feels like deliberate fraud to me.

Rents hardly moved because property prices were rising. Landlords had a poor negotiating position with tenants because tenants could buy for less than renting cost.

If house prices start to come off, rents will rise because it's worth paying more rent to avoid being exposed to capital losses.

Eventually capital prices fall and rents rise to the point where enterprising individuals buy property, accepting the risk of further falls, and let it out at a profit to people scared to do the same.

Thus was BTL born and thus may there very well be a second wave (fingers crossed).

princeofpounds

I rented in London from 98-13 and rents hardly moved at all

You were lucky then... I don't think many people would describe the same experience.

IveSeenTheLight

Loughton_Monkey wrote: »

.... large rent increases all round.....:rotfl:

Just had a call from one of my tenants.
His friend is looking for a flat and wondered if I had any available.

The reason he is looking is that his current place needs repairs and whilst the letting agent has agreed to the repairs, they are looking to increase the rent by £300 per month for a 4 bed place.

Not sure of the details if they were due for an escalation or if they were substantially below the market rate, but that would appear to be some increase.

Incidentally, I do not have any spare properties as all are on extended leases