Rents set to plunge!!!!!!!!!!!!!!

PasturesNew

poppy10 wrote: »

But it's good to have a nice clean spare bedroom to bring the laydeeez home to. :cool:

I am a girl, and I thought you were too.
Let them sleep on the sofa/floor. Jesus people want pampering these days!

lil_me

I think the new LHA will effect rentals aswell, many in rented accomodation are on benefits of some sort, the LHA is paying much less to claimants than HB was. The allowances are now based on bedrooms rather than rooms in general. If I was a HB claimant my rent which is over £600 a month, they'd have paid £112.50 weekly last year on HB, since the changes we'd be entitled to £92.31......good £20 difference per week for someone on benefits who'd be already pulling out a lot to 'top up' from benefits.

In my area rentals are coming down a lot, many we looked at in August are still empty. Prices dropping as an example one that was £695 is now advertised at £525 PCM. I could get a 4 bedroom new build for what I am paying now.

chrisandanne

But you can charge more rent for the night if you provide them with a bedroom.

PROFESSIONAL_LANDLORD

lil_me wrote: »

I think the new LHA will effect rentals aswell, many in rented accomodation are on benefits of some sort, the LHA is paying much less to claimants than HB was. The allowances are now based on bedrooms rather than rooms in general. If I was a HB claimant my rent which is over £600 a month, they'd have paid £112.50 weekly last year on HB, since the changes we'd be entitled to £92.31......good £20 difference per week for someone on benefits who'd be already pulling out a lot to 'top up' from benefits.

In my area rentals are coming down a lot, many we looked at in August are still empty. Prices dropping as an example one that was £695 is now advertised at £525 PCM. I could get a 4 bedroom new build for what I am paying now.

Hmmm, interesting that the figures for LHA have been released for your area, most have yet to be disclosed.

lil_me

http://lha-direct.therentservice.gov.uk/LHASearchIntro.aspx

I think nearly all are on there now

Main difference I think for example is previously my family would have been 'allowed' a 4 ROOM house, now we'd be allowed a 2 BEDROOM house due to the childrens ages. Hence the steep step down in allowance.

IveSeenTheLight

macaque wrote: »

I hope I got the right number of exclamation marks. Given the theme of the other thread, I felt we needed a little bit of balance.

With the locking up of the housing market, rents will enjoy a few months of bouyancy. Beyond that however, rents must be destined to plunge for lots of reasons:

1. A flood of cheap properties coming onto the market.
2. Over supply of new builds lying empty.
3. East Europeans heading home in their thousands.
4. Rapidly rising levels of emigration.
5. Falling incomes
6. Rising unemployment.
7. Rising taxes.
8. Councils using their new powers to bring 840,000 empty properties back into use.

I take it your post is an attempt at irony or a joke as it is pure speculation and contains no facts.

I posted some personal facts on the other thread which you can see here: -

http://forums.moneysavingexpert.com/showpost.html?p=9884625&postcount=45

Riq

I hope this thread is more truerer (new word!) than the other clone thread.

macaque_2

IveSeenTheLight wrote: »

I take it your post is an attempt at irony or a joke as it is pure speculation and contains no facts.

I posted some personal facts on the other thread which you can see here: -

http://forums.moneysavingexpert.com/showpost.html?p=9884625&postcount=45

It is inevitable that rental property will enjoy an Indian summer with the sales market in a state of paralysis. Your other thread confirms what I said.

Looking further out, the UK rental market has a serious problem. This is not 'pure speculaton' but common sense. The rental market has been underpinned by wild borrowing/spending plus an influx of East Europeans over the past few years. They are now leaving the UK in their droves (this has been widely reported). In the next two months 10,000 city employees are going to be laid off (again this has been widely reported) and manufacturing employement is falling by 100,000 a year. In recent years, high employment in the UK has relied on tax funded projects and a massive rise in public sector employment. This is unsustainable. Over the next few years, we are facing falling disposable incomes and a falling population. This is a double whammy for the rental market.

carolt

Agreed. In the (very) short term, rental prices may rise. In the longer term rental prices will not rise but fall, as house prices fall (or 'crash' as I believe the technical term is) and so ordinary people are able to buy instead of rent again.

Round my way, the only people asking stupid rents are newbies to the BTL game who bought at the peak of the market without doing their maths properly.

Are they renting? No.

Are normal priced properties still available for rent? Yes.

Are the said BTL landlords up sh*t creek without a paddle? Yes.

Oh dear.

wharty

Doozergirl wrote: »

Woohhooo! A new crash! A rent price crash!

Quick, who wants to start a new website and forum? Get in there early and we can flog it on to some randoms for a quick buck!

Ha ha i like that.:rotfl: