Landlord trade bodies say the political fight against tax changes goes on

CLAPTON

cells wrote: »

Rents are set by tenants always have been and always will be. Landlords will accept almost any rent. The question is then what makes tenants bid up the rent to current levels and what might make tenants bid a higher or lower rent in the future

rents, like most prices, are set by supply and demand

mrginge

cells wrote: »

Rents are set by tenants always have been and always will be. Landlords will accept almost any rent. The question is then what makes tenants bid up the rent to current levels and what might make tenants bid a higher or lower rent in the future

Interesting theory.

Where do you believe tenants should live while they are telling all these landlords where to stick their high rents?

I might test the same logic out when I go fill my car up with petrol. Off to shell, offer them 80p a litre. Then when they say no drive to BP, offer them 80p a litre, then drive to Esso, offer them 80p a litre. Then run out of petrol on the way to Jet.

cells

mrginge wrote: »

Interesting theory.

Where do you believe tenants should live while they are telling all these landlords where to stick their high rents?

I might test the same logic out when I go fill my car up with petrol. Off to shell, offer them 80p a litre. Then when they say no drive to BP, offer them 80p a litre, then drive to Esso, offer them 80p a litre. Then run out of petrol on the way to Jet.

Landlords rent out their properties effectively on a auction process with no reserve. The tenants bid the price up to a level and that sets the market price.

Your petrol example is not comparable because the petrol station has high costs. A landlords, many landlords, have a much lower marginal cost so can operate at much lower rents (think of the ~half the rental stock that is owned outright)

To further point this out, the rental market is quite seasonal especially in London with rents moving down as much as 15% between summer to winter. This shows landlords dont have a static price but that tenants set the price with lower bids in the winter they dont bid as high

cells

mrginge wrote: »

Where do you believe tenants should live while they are telling all these landlords where to stick their high rents?

Its a competitive market on both sides. There are millions of landlords and millions of tenants so you cant rig the price.

If a million tenants died then there would be fewer tenants to bid against each other and the price of rentals would be substantially lower. If a million tenants (or owners) died the price of bread in the supermarkets would more or less be the same


Tenants as a whole have needs and wants and they will bid upto a level where the value of the payments is lower than their needs and wants. There are lots of tenants doing this and the clearing rents are the sums where the winning bidders are happy that the figure they bid is lower than the max figure they would bid to meet their wants.

mrginge

cells wrote: »

Its a competitive market on both sides. There are millions of landlords and millions of tenants so you cant rig the price.

If a million tenants died then there would be fewer tenants to bid against each other and the price of rentals would be substantially lower. If a million tenants (or owners) died the price of bread in the supermarkets would more or less be the same


Tenants as a whole have needs and wants and they will bid upto a level where the value of the payments is lower than their needs and wants. There are lots of tenants doing this and the clearing rents are the sums where the winning bidders are happy that the figure they bid is lower than the max figure they would bid to meet their wants.

No, rather than give me a load of nonsensical theoretical claptrap that bears no relation to actual life I just wanted to know where you expect tenants to live while they are refusing to pay high rents.

I mean, I'm assuming from your first sentence that you believe there is sufficient housing stock in this country to facilitate a competitive market. Is that correct?

Graham_Devon

cells wrote: »

Landlords rent out their properties effectively on a auction process with no reserve. The tenants bid the price up to a level and that sets the market price.

And back in the real world...

cells

mrginge wrote: »

No, rather than give me a load of nonsensical theoretical claptrap that bears no relation to actual life I just wanted to know where you expect tenants to live while they are refusing to pay high rents.

I mean, I'm assuming from your first sentence that you believe there is sufficient housing stock in this country to facilitate a competitive market. Is that correct?

Tenants who are outbid by the other tenants either live more dense or move to an area where they are the highest bidders or go back to live with their parents

Yes there is sufficient housing stock in the UK and yes its a competitive market.

CLAPTON

cells wrote: »

Tenants who are outbid by the other tenants either live more dense or move to an area where they are the highest bidders or go back to live with their parents

Yes there is sufficient housing stock in the UK and yes its a competitive market.

so you mean that supply and demand determine the price of renting.

mrginge

cells wrote: »

Tenants who are outbid by the other tenants either live more dense or move to an area where they are the highest bidders or go back to live with their parents

Yes there is sufficient housing stock in the UK and yes its a competitive market.

Well I think we can safely say that you are the only person in the country that believes that. Congratulations.

https://www.parliament.uk/business/publications/research/key-issues-parliament-2015/social-protection/housing-supply/

http://www.shelter.org.uk/__data/assets/pdf_file/0019/802270/Building_the_homes_we_need_-_a_programme_for_the_2015_government.pdf

http://www.cbi.org.uk/news/homes-for-growth/

http://www.bbc.co.uk/news/business-33539816

http://www.telegraph.co.uk/property/house-prices/the-state-of-the-uk-housing-market-in-five-charts/

cells

mrginge wrote: »

Well I think we can safely say that you are the only person in the country that believes that. Congratulations.

Government and media is in Westminster and inner London which skews the views of government/media by the realities they experience of inner London where there is a shortage of homes of all types. Inner London specifically zone 1&2 need a lot more homes that does not then translate to a shortage of homes in the whole of the UK

Is there are shortage of homes in stoke-on-trent where the local terrace costs roughly 1 x joint full time local income? Is there a shortage of homes in the NE/NW/WM/EM/Y&H/N-Ireland/Wales/Scotland where purchasing the local terrace home mortgage costs within £100pm of social rents?

The UK is many regions and really the main shortage is a shortage of homes/flats in zone 1-2 and maybe Z3 too.