When will London burst ?

cells

NorthFin wrote: »

I dont think they want to lower rents, its just they cant afford to keep propping them up so high. If these cuts go ahead for everyone working or not, then rents will fall. Either that or there will be record numbers of evictions due to not being able to afford the rents out of their own pockets.

I suspect a bit of both.




So if the proposed cuts go ahead, are we really talking about ALL the low income families being forced to live outside London? Either that or rents will come down to correct levels they should have been without the artificial prop called high housing benefit payments!

the idea that London can not sustain high rents because the poor people wont be there to do the poor paid jobs is just silly

24% of homes in London are council/HA/Social so thats poor people with poor wages but very low rents.

Surely you don't think more than 24% of jobs in London are minimum wage?

Also plenty of poor people own homes in London

cells

ciaccino wrote: »

I have lived there and I can confirm that rents are considerably cheaper. There's a cap on rents that can be easily enforced by calling the local council.

Rents in Germany are primarily cheaper because the Germans now have more than 40 million homes

For the UK to get to that number of homes we would literally have to continue building at the current rate for 100 years

buglawton

Berlin recently imposed a rent cap, the question is, if rents are so affordable, why?

[Deleted User]

buglawton wrote: »

Berlin recently imposed a rent cap, the question is, if rents are so affordable, why?

It's the opposite. Rents are affordable because there's a rent cap. As long as I know, rent caps were on a national level but single states can amend the amount.

cells

buglawton wrote: »

Berlin recently imposed a rent cap, the question is, if rents are so affordable, why?

a quick check says that the "rent cap" is actually a rent price increase cap

Landlords will not be permitted to charge more than 10% more a year but rent price inflation is pretty much always less than that

so a non cap cap

buglawton

I was watching a German documentary article about rogue rental agencies in the big German cities, apparently it's become so competitive now that large and unfair fees are being charged by agents just to get on a shortlist. There's a lot of discussion in Germany about clamping down on these.

antrobus

cells wrote: »

a quick check says that the "rent cap" is actually a rent price increase cap

Landlords will not be permitted to charge more than 10% more a year but rent price inflation is pretty much always less than that

so a non cap cap

As far as I'm aware, yes.

There is an explanation in this document here, see page 17 onwards.
http://www.lse.ac.uk/geographyAndEnvironment/research/london/pdf/Rent-Stabilisation-report-2014.pdf

Briefly; in Germany rents can be "freely set on initial letting" and are then index-linked to mirror-rent tables (Mietenspiegel).