Rents rise as house prices fall

dopester

!!!!!!? wrote: »

Unless there's wage inflation to match general increases in the essential costs of living, pressure on rents will most likely be downward. If there is wage inflation the LLs should do OK.

This time around I'm not a big believer in wage inflation - too much debt in the system. If the Government caves in to the public sector such as the teachers demands for wage inflation - then how does the business private sector cope with it when the increase has to be met from their turnover? And the teachers wage inflation would have to be met by higher taxes yes?

I know what every working member of my family would be told if seeking a pay-rise from their employers. More likely it would be met with, "Well actually we're struggling to keep you on" - or - "You're having a laugh".

Seriously, maybe someone has to explain it clearly to me, because I really struggle with the concept of wage inflation. Am I looking at it from a wrong angle? I admit I might have given how so many people take it seriously.

Lets take my friend who is a mechanic... if he sought wage inflation to better allow him to keep up with living costs, that would require the owner to put up his charges to customers... who are in turn in the squeeze and looking for bargains, and would go to a cheaper competitor yes?

There might be wage inflation to a degree but I think it will be limited. In situations like these, my understanding is unemployment skyrockets when real wage rates rise.

Then wages and prices are cut as the system winds down - assuming we are in for deflationary adjustment - and the authorities don't got the crazy route of hyperinflation.

dopester

IveSeenTheLight wrote: »

People renting need a roof over their head. Any pressure downward will be on non essentials i.e. cigaretts, beer, going out, iPods, Plasma Tv's etc etc etc before there is pressure on rents.

So provided people can scrape enough money each month, presuming there isn't huge increases in unemployment, to pay your rent in a nice house/apartment you'll be happy. Nice one. I can see your tenant now... shivering around a candle in the lounge for warmth, as all his disposable income goes on a luxury pad.

Let's Lynch The Landlord
http://www.youtube.com/watch?v=Wo46V3Y8auE

We've already had this discussion - in hard times - people will do multiple share with many a landlord grateful for the income, move back with family, camp, squat. I do hope your game-plan includes longer voids, just in case.

owitemisermusa

MissMoneypenny wrote: »

The CAB are trying to do something about that, but our government don't move quickly - unless it is for a pay rise for themselves or hiding their expenses.

"The CAB report recommends that where tenants who face eviction believe action has been taken in retaliation, a judge should have the discretion to overrule the use of Section 21.The report also recommends that measures are introduced to prevent landlords from taking retaliatory action by imposing extraordinary rent rises instead."

"Research in the report also shows that in Australia, New Zealand and the majority of US states there are laws designed to prevent retaliatory eviction. In several European countries, the problem does not arise because tenants have greater security of tenure. "

http://forums.moneysavingexpert.com/newreply.html?do=newreply&p=11062917

As we are in the EU we should really be following other European laws.

IMHO, I think the laws are heavily skewed in favour of tenants. What's to stop a tenant from playing the retaliation card everytime he's asked to leave or pay an increased rent?

I think there are already measures to prevent arbitrary and unreasonable rent increases in place -the Rent Assessment Panels.

IveSeenTheLight

dopester wrote: »

So provided people can scrape enough money each month, presuming there isn't huge increases in unemployment, to pay your rent in a nice house/apartment you'll be happy. Nice one. I can see your tenant now... shivering around a candle in the lounge for warmth, as all his disposable income goes on a luxury pad.

Let's Lynch The Landlord
http://www.youtube.com/watch?v=Wo46V3Y8auE

We've already had this discussion - in hard times - people will do multiple share with many a landlord grateful for the income, move back with family, camp, squat. I do hope your game-plan includes longer voids, just in case.

Settle, stop prancing about like a fairy

My point is that rental prices settle where demand is and that there are other luxuries which will go before rent is affected in my opinion

MissMoneypenny

owitemisermusa wrote: »

IMHO, I think the laws are heavily skewed in favour of tenants. What's to stop a tenant from playing the retaliation card everytime he's asked to leave or pay an increased rent?

I think there are already measures to prevent arbitrary and unreasonable rent increases in place -the Rent Assessment Panels.

But nothing in place to make the LL abide by the law and do his repairs, if the tenant is afraid that the LL will tell them to leave if they complain about the non repairs. Hence why the 3 year tenancies that some other EU countries have, will be better. It would also serve to get rid of the amateur LLs.

I was surprised to find that every council tax payer is paying for the bad LLs. We all pay for the wages of the local council's Tenancy Relations Officer, who deals with the bad LLs. I would rather the TROs wages were paid for from fines against the bad LLs that they have to deal with.