Insane rent increase.

[Simon]

Does everyone need £50k, or anything like it, for a deposit?

Well apparently easy finance was the previous cause of house price increases hence the end of 100% mortgages.

 

[cheesyboy]

In most European countries, renting is the norm rather than ownership,

Lol. I nixed this myth just a few days ago in another thread:

This is substantially nonsense, and it gets pushed out ALL the time.

Have a look
https://en.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate

France, Spain, Belgium, Italy, Ireland, Poland..... all higher owner-occupier rates than the UK.

It's only really Germany who are lower, and its not by all that much. Coincidentally, they have MUCH stronger tenant rights laws, too.

I only buy properties that are unmortgageble, I fix them up and either sell them, or in the past I've rented them out, I've taken something that is not part of the property market and fixed it so that it can be, the house was empty and out of use as a residential property, I've added several houses back in to the market.

In actual fact, I don't see anything wrong with buying and fixing up properties, and that's clearly actually work.

But that's distinct from landlording.

 

[Slam62]

Absolutely, we've got ourselves into a trap.
I still think there's room to prop up the market with pass down mortgages.

Maybe as more people start living with parents the natural demand for houses will shrink and prices will stabilise.

Doesn't help when affordability criteria is mentioned in regards to loosening.
Personally I think that's a bad idea!

What really galls me is emails from my bank saying help a loved one buy a home, stuff that, I've spent 40 years getting off the debt slave treadmill thanks.

 

[andybird123]

Lol. I nixed this myth just a few days ago in another thread:



In actual fact, I don't see anything wrong with buying and fixing up properties, and that's clearly actually work.

But that's distinct from landlording.

But all the things aimed at making lives more difficult for landlords have made my life as a property developer untenable, so now I do neither.

 

[cheesyboy]

But all the things aimed at making lives more difficult for landlords have made my life as a property developer untenable, so now I do neither.

To be fair, if you ran it as an actual business, through a Ltd company etc, (like a real job )then you'd not be affected

Though I will say that there should be some allowance made in regulation for making-good uninhabitable homes. Rather like incentives for building new ones. Surprised there aren't already, tbh.

 

[Surveyor]

Well apparently easy finance was the previous cause of house price increases hence the end of 100% mortgages.

I wasn't querying if everyone needed a deposit, do they need a £50k deposit?

 

[Simon]

I wasn't querying if everyone needed a deposit, do they need a £50k deposit?

No. But they need some deposit due to the latest mortgage products. £10k is a push for most and you need more for decent mortgage rates so you get lower monthly payments so that mortgage is less than rent

 

[cheesyboy]

You do live in Gloucestershire though. Pretty sure it's quite pricey down there.

It's about national average. So much more expensive than the North or Midlands, but less than the South East.

But I'm not moaning because I'm getting ******, I'm fine: got a £170k mortgage on a £450k+ house and will be mortgage free in my early 50s.

I'm moaning because people like me simply can't do what I did any more. Coming from a poor-ish background with no family wealth, I'd simply not be able to have done it if I were 15 years younger (I'm 39), despite being paid reasonably well.

 

[Surveyor]

No. But they need some deposit due to the latest mortgage products. £10k is a push for most and you need more for decent mortgage rates so you get lower monthly payments so that mortgage is less than rent

Depends how much your rent is and how much you would have to pay to buy. Individuals can do their own calculations based on their circumstances.

 

[andybird123]

To be fair, if you ran it as an actual business, through a Ltd company etc, (like a real job )then you'd not be affected

Though I will say that there should be some allowance made in regulation for making-good uninhabitable homes. Rather like incentives for building new ones. Surprised there aren't already, tbh.

Anyone running as a sole trader or partnership is also running a "proper business". I don't borrow money so being a Ltd wouldn't make any difference.

 

[potatolord]

It's about national average. So much more expensive than the North or Midlands, but less than the South East.

But I'm not moaning because I'm getting ******, I'm fine: got a £170k mortgage on a £450k+ house and will be mortgage free in my early 50s.

I'm moaning because people like me simply can't do what I did any more. Coming from a poor-ish background with no family wealth, I'd simply not be able to have done it if I were 15 years younger (I'm 39), despite being paid reasonably well.

I got my first mortgage on a 3 bed house in cardiff as an admin officer in the jobcentre at 23. That house was about 3x my salary.

Those houses are now around 6-7 times that admin officer salary.

 

[Shikkaka]

Renting is ridiculous at the moment. Me and my ex were renting a 4 bed semi for £850 a month, we've since separated and shortly after the landlord gave notice. She's now moved into another 4 bed semi for £1250 a month, a £400 increase for practically the same house.

I'm in the fortunate situation where I chose to rent my house out when I moved in with the ex. Since we separated last year I decided to rent a place myself instead of asking my tenants to leave. I had planned to try and buy a second property for me to live in and keep my first property rented but with house prices as they are and the 8% stamp duty I'd need, it's borderline impossible.

I've now either got to ask my tenants to leave as I want to move back in or increase their rent to make it semi-worthwhile. It's a shame because they're excellent tenants and I've kept the rent at £600 for 3 years because of that but unfortunately it's also got to make financial sense for me too.

Not all landlords are money grabbing scumbags but I do see in the ops situation the increase seems unjust.

 

[Em3bbs]

Is this the cheesyboy AMA rental thread? I think we get your opinion of landlords now mate.

 

[AiiR]

No, landlords aren't the problem. The problem is a property market which has been rigged for decades to ensure prices keep increasing faster than wages. Landlords are a symptom of the problem, because it's been an absolute no-brainer for anyone who has money, to buy property and become a landlord, because the deck is stacked so hard in your favour, it's been 99% impossible to come out of it with anything other than huge gains.

I think a lot of smug landlords trying to put the squeeze on rents right now are going to get a rude awakening when the cost of living really bites this year....with defaults and demand dropping.

At some point, you can't just keep funneling money from the poor to the wealthy.....people will snap. This next winter when people can't afford to heat their homes may be the breaking point.

Watch the government step in to help struggling tenants paying rent to prop up landlords.

 

[cheesyboy]

Is this the cheesyboy AMA rental thread? I think we get your opinion of landlords now mate.

But there might still be forum users who think landlording is a morally upstanding investment opportunity

 

[willhub]

I'm confused? Are you a communist? Is all property, our property?

If the landlord feels they've underpriced the rent, they are now committed forever to low rent? If it's so expensive then go out find another place.

I rented for years. I never complained when rent was increased. It's up to me to accept or find a better place. Same goes for anything else, salary, price of milk, or how much a plumber charges me. I don't go round dictating what others should think when it is their time, property or produce.

Sounds like you only care for your own circumstances. Do we all have the same 24 hours as well?

Our rent is going up £130 per month, the next door neighbors has gone up £30 per month, owned by the same company, the property is the same.

It's an absolute rip off disproportionate with anything but greedy "market rate".

 

[Puzzled]

Sounds like you only care for your own circumstances. Do we all have the same 24 hours as well?

Our rent is going up £130 per month, the next door neighbors has gone up £30 per month, owned by the same company, the property is the same.

It's an absolute rip off disproportionate with anything but greedy "market rate".

Have you tried negotiating? As mentioned earlier in the thread some landlords will come down in price to save the hassle of finding a new tenant.

Are the rents different between the properties or have they now been raised to an equal level (was your rent cheaper than theirs before)? They might not realise that you know what next door are paying so you can use that when negotiating.

 

[willhub]

Have you tried negotiating? As mentioned earlier in the thread some landlords will come down in price to save the hassle of finding a new tenant.

Are the rents different between the properties or have they now been raised to an equal level (was your rent cheaper than theirs before)? They might not realise that you know what next door are paying so you can use that when negotiating.

Our rent when we moved in was £725, the next door neighbours was £695, theirs has gone up to £725, ours has gone up to £855.

The properties are 100% the same except ours has a slightly bigger garden which I can't imagine justifies the rent increase, we're on the end of a terrace basically.

We are trying to negotiate however the company is so slow at getting back by the time we can or cannot come to an agreement it'll be close to May 16th and our tenancy will be nearing its end.

 

[fez]

I'm moaning because people like me simply can't do what I did any more. Coming from a poor-ish background with no family wealth, I'd simply not be able to have done it if I were 15 years younger (I'm 39), despite being paid reasonably well.

My situation is not quite so cut and dry but if I look at my parents its as clear as day. Mum worked a bit as a hairdresser doing old ladies hair and dad worked as a civil servant, never earning more than a slightly above average wage. 2 kids. My parents were very frugal but we still went on good holidays semi-regularly and they just massively priorities "experiences" over material items. I can probably say that we got takeaway about 3 times before I left home at 18.

Mum retired in her early 60s but had been semi retired for years and dad retired before he was 60. They now go on 5+ holidays a year, usually one biggie like a 3+ week trip to New Zealand i.e. not cheap. They don't have a mortgage and have bought budget but new cars a few times over the past 10 years.

If you transposed that to now, neither of them would retire early, we wouldn't be able to do those holidays and they wouldn't have the house they do or the really comfortable existence they have.

America seems to struggle with this massively as well. The golden age has passed. Working hard and doing an honest job for 40 years doesn't guarantee you squat anymore. I really feel for the future generations. They have been royally shafted and thats before we even think about global warming.

 

[Surveyor]

Our rent when we moved in was £725, the next door neighbours was £695, theirs has gone up to £725, ours has gone up to £855.

The properties are 100% the same except ours has a slightly bigger garden which I can't imagine justifies the rent increase, we're on the end of a terrace basically.

We are trying to negotiate however the company is so slow at getting back by the time we can or cannot come to an agreement it'll be close to May 16th and our tenancy will be nearing its end.

Your house is an end terrace with a larger garden, both of which are usually considered more valuable features. How much more is the question to be sorted between you and your landlord

If you get to 16 May and nothing has happened you just continue to occupy on a periodic tenancy.