Rents on the Up - The Times

Bishop87

Hi all,

I don't usually 'advertise' news stories, but it plays an important part in house prices I believe.

http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article4207814.ece

Not really gonna help average FTBers save before they buy is it...these are hard times it seems.

I can speak true of this, my one bed flat with a tiny sea view was going from 475 to 525 if I didn't leave this month. And I hear they're gonna advertise it at 550.

Incisor

Hmm, I think it is a bit selective. Yes, people not buying but following advice here to rent does put pressure on, but I suspect that is very dependent upon location. There is probably still loads of unloved and unwanted flats away from London or the seaside.

boinging_2

£50 a month increase in rent over a year = £600

House prices falling 20% over a year = £36,000 off the price of an average house.

I'll take the rent increase I think.

abaxas

Maybe it should be.....

Rents static of falling for those who know how to play the game. Ie professional tenants.

but...

Rents rising for the idiots who actually pay the price without negociation.

m00m00

Paragon say one thing

Property Bee says another

Bishop87

boinging wrote: »

£50 a month increase in rent over a year = £600

House prices falling 20% over a year = £36,000 off the price of an average house.

I'll take the rent increase I think.

Very generalized comment, hoping things go 'our way' rather then the other. And assuming we can all get mortgages in a year at this rate.

obsessed_saver

Rent was £320 all inclusive May 2006. Increased to £335 all inclusive Jan 2008. No worries with utilities, or council tax.

Snooze

I don't see rents going up round my way in W Yorks. If anything they're still dropping. The market round here is still saturated with rental places.

I put an ad on Leeds gumtree about a week ago in the wanted section for a self-contained flat or house in a decent area of Leeds for under £500/month for a mate of mine without internet and so far I've had 22 replies from private LL's offering places, some of them literally begging me to come and see them and they'll throw in water rates, free internet, council tax, first 2 months half price and all sorts of other incentives.

He's actually sorted for a place now - a flat in a recently converted mansion up near Rawdon (very nice area) in private grounds for £350/month, free internet and council tax paid.

Rob

brit1234

For the unaware this article has Paragon references through it, be careful.

Paragon is a vested interest company that had a massive interest in ramping up prices before January when they went broke. Now prices are falling fast they have turned from promoting capital gains over rent to rent over capital gains. They have a big history of distorting the facts. ARLA was saying the opposite a couple of days ago, ie rents down 7% in houses and 9% in flats.

Yes there are some increases but as an average rents are falling. There is an increase in rental demand but there is also more rental properties coming online all the time and lots of vacant newbuild flats in city centers.

Remember Paragons former company went bankrupt in the last crash.

Geenie

Bishop87 wrote: »

Hi all,

I don't usually 'advertise' news stories, but it plays an important part in house prices I believe.

http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article4207814.ece

Not really gonna help average FTBers save before they buy is it...these are hard times it seems.

I can speak true of this, my one bed flat with a tiny sea view was going from 475 to 525 if I didn't leave this month. And I hear they're gonna advertise it at 550.

It is in the SW, where you don't have large cities with massive amounts of new build flats going empty like in Leeds and Manchester for eg. Much more rural down here. Family orientated and less housing to barter with, so rental prices appear to be staying good. Plus we have the sand, sea and good schools which seems to still appeal to incomers. House selling has slowed down for sure, but the prices had gone so mad before that it is understandable that renting has gone up. A pokey 2 bed cottage is £250,000 in areas near me!!!!! :eek: No way can a young family afford that on a mortgage.

Microstar_2

Rental market has not really strengthened in the Midlands. I am asking about a 3-5% increase and that is merely to cover my increased costs, no actual net gain to me. I think some rent increase is to be expected against the current background of inflation. Remember that general running costs and maintenance costs are rising for OO's too.
No idea of the London, and SE market, maybe a lot stronger?