We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The end of subsidised rent?
Options
Comments
-
Social housing rents are not subsidised. Its the other way around, private rents are over-inflated.0
-
Private rents are NOT over inflated.
They are, by definition, market value at the time.
You might well think they are high, but if demand exceeds supply then the price goes up until demand and supply are matched.
The reverse would apply if supply exceeded demand.0 -
I agree with all your points.
However, the rents are affordable at the moment, but a change in the legislation looks to increase them. Of course this may cause some people to move because they can no longer live in the area.
But, the point of the thread is, what do people know about the proposed changes to subsidised rents?0 -
You live in SE? :f If not there's probably a lot of waste in your spending habits. Excluding rent, essential utilities would be about £250/month for me in West Mids.
After the taxman butchers your salary (£30k) that's £2k/month
I think restrictions in support is inevitable. I think if they do remove it then rents in general will take a dip in prices as they'll become affordable for many & landlords won't want empty properties...but not before a lot of evictions & heartacheMortgage (Nov 15): £79,950 | Mortgage (May 19): £71,754 | Mortgage (Sep 22): £0
Cashback sites: £900 | £30k in 2016: £30,300 (101%)0 -
bobbymotors wrote: »Private rents are NOT over inflated.
They are, by definition, market value at the time.
You might well think they are high, but if demand exceeds supply then the price goes up until demand and supply are matched.
The reverse would apply if supply exceeded demand.
That would ONLY be true in a free market, something the housing market deffenatly is NOT. It is heaverlly skewed in favour of limiting supply by a combenation of planning law, green belt rules, NINBYism and general government policys to keep house price inflation high. As a result house prices (intentional) and rents (less intential) are over-inflated.0 -
It is a free market. They are not over inflated they are at current market value. They could go up, they could go down. That's what a market is.
If fewer people wanted to live in the UK then rents would drop, it really is as simple as that.
If more houses were built then rents would drop
Yes, there are greedy irresponsible landlords that pack 20 people into a 3bed semi, but they are in a huge minority.
If you can rent out a house for a decent rent that makes a profit, then why wouldn't you? At a market agreed rent between you and the tenant?
After all, if you found a £50 note, you wouldn't sell it for £40 just because you found it would you?0 -
bobby i think you misinterpreted my post. At no point was i having a go at landlords. a landlord has every right to charge as much as the market will bare.
My point was that the housing market is not a pure free market (by deffenation a free market is unregulated, ANY regulation removes the "free"). In a truly free market When demand outstrips supply 2 things happen price increases and due to increased profits production also increases untill supply and demand level off. The problem with our housing market is regulation (as mentioned above planning etc) artifically increase the cost of production as well as making production to the level needed impossiable breaking 1 of the 4 pillers of a free market (of which for some reason people only seem to mention 2 of them). Supply, Demand, Production & Consumption
For a free market to work all 4 pillers need to be aligned not just 20 -
-
By that definition, there is no such thing as a free market in any goods or service in any economy anywhere in the world.
That is indead true. a pure free market requires other impossiabilitys such as total knowledge (ie all consumers and selles know all posatives and negatives about all products and all sellers & consumers).
This is the problem when people talk of theoretical systems (such as free markets) without fully understanding it.
The point is when you regulate a market you should look at the total impact of those regulations and balance them out on the other side of the supply,demand,production,consumption scale. Which is what social housing, subsudised rents and RTB are supposed todo (but fail)0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.3K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards