Insane rent increase.

[Dup]

We must be a failure working in banks on low wages every man and his dog must earn more. 25k salary must be like 15k 10 years ago. Seems pointless working when the wage doesn't amount to anything meaningful.

Don't beat yourself up over it mate. I worry about the similar happening to us. I'm 37 and only just getting going in my career with my first decent promotion. I bought a housenjust before the recession and was stuck in negative equity until hast year when I sold it, despite not living in it for 11 years (long story).

We rent a shoddy 3 bed terrace but we're out in the sticks away from the cities so rent is reasonable but with every snag we get fixed I worry the rent is going to go up. We want to get a sizable deposit together, not throw money away renting but with the cost of childcare and energy bills I worry we'll be using our savings not building them. I also don't want to buy in this market and the bubble burst and be trapped like I was before.

Is your partner having reduced hours to reduce the childcare cost? If so, wouldn't it be better to suck it up and she pursue her career more? Big ask of course because obviously raising a child and being around is also important but it's another angle to look at.

Hope you get it sorted though, the world is ansillu place now and hopefully this bubble bursts soon.

 

[EvilRob]

So me and my partner moved into this house in Chadderton, Oldham (nowhere fancy) a year ago. Since then she's halfed her salary and we've got a 7 month old.

When we moved in they made out they wanted is to treat it like our home and they're for long term but are kind of saying the opposite now, all these houses are owned by an investment firm so any chance to get more money they're going to rub their hands.

Our house is a tiny 2 bed and we were charged £725 per month however they wanted to raise the rent to £855!?!!!

Our tenancy ends on 16th May and they told is this yesterday, I think they require one month notice to give us.

But between bartering offers time is going to crack on and if we can't agree an offer I can only imagine it'll be extremely close to our tenancy expiring. So if we've not agreed an offer by the end can they kick us out?

Doesn't that amount of rent increase seem insane? The next door neighbor who's house is through the same form with the same investors behind and she's been there 2 years longer was paying 675 and now paying 725, so seems they don't play fair either?

Just seems disgusting to me when our wages have gone up less than 5% not to mention cost of living rise with inflation we're going to be royaly screwed!

What does your rental agreement state regarding when and how much the rent can be increased by, if anything? It is often set out clearly and landlords then try to pull a fast one. From looking into this for a relative recently, a reasonable increase would be in line with inflation which this clearly isn't.
I think you are in a good position to negotiate down to at least half this increase - in a way you have the power as if you make them go through the eviction process the cost to them will just eat into the gain they are trying to get from increasing your rent and so not be worth it. They may well be receptive to a counter offer.

 

[Tom_ed1987]

Are you planning to buy any time soon OP?

It's not the morally correct way forward but if you just stopped paying rent right now it will likely take them 12+ months to get through the (very backlogged) legal process to evict you.

A well managed investment firm will have budgeted for such eventualities too so you needn't even feel that bad

 

[mid_gen]

What's going on, why/how are folk willing and able to pay these higher prices? Hasn't the exodus of EU citizens post Brexit and Covid related excess mortality reduced UK population wrt couple years ago? Doesn't higher interest rates and higher bills in general reduce the amount people can borrow for mortgages?

Where's the support for higher house prices coming from? I can understand a shift away from city centres to more rural areas, bigger gardens etc, but why are all prices up?

Rishi Sunak spent 6 billion odd quid of taxpayer money on driving prices up during the pandemic.....that's what happened.

Anyone that thinks the Conservatives will ever do anything BUT push property prices up is out of their mind.

 

[Surveyor]

Are you planning to buy any time soon OP?

It's not the morally correct way forward but if you just stopped paying rent right now it will likely take them 12+ months to get through the (very backlogged) legal process to evict you.

A well managed investment firm will have budgeted for such eventualities too so you needn't even feel that bad

He'd still be on the hook for the rent and at least some of the costs. What will happen to his chances of getting a mortgage or another tenancy if this turned into an eviction for non-payment of rent?

 

[FBi7]

we have enough money for a 5% deposit mortgage but can't see us finding and securing a house in a few months we was hoping 1 to 2 years.

Seriously, and I mean seriously, don't let what you think you know cloud your judgement. I've been there. Speak to a proper financial advisor/mortgage broker.

My story: I was young and naive, took out my 1st mortgage in 2006, £0 deposit/~108% (to pay off a small debt and furnish the house). 2 yr fixed. Then the financial crash happened towards the end of the 2yr fixed term. We were with Northern Rock and they hiked up their interest rates to recoup costs. Eventually they went bust and our mortgage was sold several times to what were essentially a series of debt recovery companies. Instant (even more) negative equity. We carried on paying these companies. Couldn't afford to remortgage, no funds for a deposit. To cut a long story short, we did eventually do what I'm advising you to and speak to someone in the know. You might be pleasantly surprised. By doing what I eventually did, I saved £200 on my mortgage without increasing the term. I still kick myself for not doing it sooner. I appreciate it's slightly different having been already on the property ladder, but you won't know until you ask.

I am in no way affiliated with them, so no reward, but I spoke to London & Country. They were very helpful.

 

[.:MBK:.]

These days there isn't a good/right time to buy. As soon as you can afford something that meets your needs go for it. Otherwise you get stuck in a rent trap forever. I am glad my parents convinced me to "go for it" during lockdown and my landlord was wanting to sell the house. Mortgage is half what I was paying in rent for a similar sized property.

Admittedly property inflation has now caught up with the area I am in, but you will never beat the curve while renting unfortunately. I will admit though my family were very helpful in getting me to 20% deposit so not the same situation you find yourself in.

 

[Semple]

What's going on, why/how are folk willing and able to pay these higher prices? Hasn't the exodus of EU citizens post Brexit and Covid related excess mortality reduced UK population wrt couple years ago? Doesn't higher interest rates and higher bills in general reduce the amount people can borrow for mortgages?

Where's the support for higher house prices coming from? I can understand a shift away from city centres to more rural areas, bigger gardens etc, but why are all prices up?

Certain sectors are booming. I work in a software dev industry and we've taken on about 100 people in the last 12 months.

It is crazy though. I live in a newish build and about a dozen identical houses were built - so very easy to track house valuation without needing to get it valued. Anyway a neighbour has put their house up for rent and it was snapped up in days. Curious at the monthly price and I was shocked to see that it was 50% more than our mortgage - and we've only had a mortgage for a couple of years so it's not low by any means.

I'm very curious as to who will be moving in, because it's a low 4 figure rent amount, and I'd be wondering why they weren't saving that to make their own purchase.

 

[Semple]

Sadly Will, rental prices are daft. Some people are paying £900-1k for a 2 bed terrace here. I’d look for alternative accommodation if I was you.

The problem is what other alternatives are there. If you were single then the obvious is either a house share, or to see if you can move in with family. But if you're a couple and also have children then it's a multi bedroomed property that you need, and those are now going for a premium.

With some very basic maths, (12 months cost):
- Rent =12k
- CT = 1.2-1.5k
- Energy/Water = 2-2.5k
- Food = 2.5-3k

So you're looking at a bare minimum of ~18-20k. Which would require a gross salary of around 25k a year.

By the time you've added in transport costs, and phone/broadband, and any other very small luxuries that's probably requiring a 30k salary.

 

[Raikiri]

Oldham and chadderton aren't exactly Manchester City center.

I have my own house in the oldham area and pay less than £400 mortgage, 3 bedroom etc.

Christ, we pay £1,020 rent for a shoddy 2 bed flat down here.

It's absurd, completely impossible to save for a down payment; by the time you think you have enough prices have gone up 20% again and you have to save up another £5,000.

 

[DanTheMan]

The housing market is crazy at the moment.

I just had a look at the cheapest properties around here in Middleton, so not too far from you, and the cheapest 2 bed terrace to rent is ~£700. That's crazy, given the area. I can imagine Chadderton is more due to the metrolink. I hadn't bothered checking rental prices around here until now and I'm surprised. I thought a 2 bed terrace would be around £550pm. It has genuinely shocked me and shows how messed up the rental market is.

I can't really say anything than what's already been said. Just do what you can to buy a property, even if it's something relatively cheap that needs work doing.

 

[Surveyor]

Christ, we pay £1,020 rent for a shoddy 2 bed flat down here.

It's absurd, completely impossible to save for a down payment; by the time you think you have enough prices have gone up 20% again and you have to save up another £5,000.

You need a lot more information before you can compare anything to his £400/mortgage for a 3 bedroom house.

 

[Puzzled]

And people ask why the British are obsessed with owning their own home

Not hard to understand when landlords are looking to screw people over all the time.

Sorry op, can't help but I feel your pain.

 

[Dis86]

And people ask why the British are obsessed with owning their own home

Not hard to understand when landlords are looking to screw people over all the time.

Sorry op, can't help but I feel your pain.

Ditto and ditto. Scummy landlord.

 

[azazl187]

Move in with her dad for as little rent as possible. Work like crazy and get a mortgage together and then move out after a couple of years. Thats what we did and we also had a little one at the time

 

[.:MBK:.]

And people ask why the British are obsessed with owning their own home

Not hard to understand when landlords are looking to screw people over all the time.

Sorry op, can't help but I feel your pain.

tbh long term it seems to be the only way the british pension system works is if by the time you retire you aren't paying for the roof over your head. Trying to rent with a pension just looks impossible unless you have a crap load of assets you can liquidate...in which case, why are you renting.

 

[muon]

It's their house, they can charge what they want as long as they give you appropriate notice. Section 21 notice gives you plenty of time to find alternative arrangements.

If you feel the rent is absurd, I'm sure you will have no trouble finding alternative accommodation at what you feel is fair. They on the other hand won't find any tenants and will have an empty house earning no rent.

Just seems disgusting to me when our wages have gone up less than 5% not to mention cost of living rise with inflation we're going to be royaly screwed!

I'm not sure why you feel your landlord should give you some charity? Why is your personal circumstance their problem?

 

[EvilRob]

It's their house, they can charge what they want as long as they give you appropriate notice. Section 21 notice gives you plenty of time to find alternative arrangements.

If you feel the rent is absurd, I'm sure you will have no trouble finding alternative accommodation at what you feel is fair. They on the other hand won't find any tenants and will have an empty house earning no rent.



I'm not sure why you feel your landlord should give you some charity? Why is your personal circumstance their problem?

Not necessarily true. Depends on what his rental agreement says about rent increases and whether the rent increase is reasonable under Section 13.

 

[muon]

Not necessarily true. Depends on what his rental agreement says about rent increases and whether the rent increase is reasonable under Section 13.

It will almost definitely be an AST. The contract is for a fixed term. At the end of the fixed term it will become periodic or a new contract will be needed.

The landlord can serve Section 21 if you don't agree to a new AST, if that is what they want. That new AST can charge whatever rent they want.

 

[The Funktopus]

I live in a suburb of south Liverpool, and when we bought our house back in 2017/2018, I thought prices were utterly bat**** then. My wife’s best friends been trying to buy a house near us recently, and they’re getting into bidding wars where they’ve been offering £60k over asking, and still getting outbid. Honestly can’t see how this is in any way, shape or form sustainable at all, especially with wages lagging behind so massively.