Rents rising

Redwurzel

Redwurzel

Well-known member
This story shows how typical rents for property are rising and some in society are getting really squeezed.

Trowbridge is not a touristy town or a place people go on large numbers to retire to. Neither is it a commuter town for London. It was known as a manufacturing town and the biggest employer is a frozen food company. Its like Darlington, but just under half of the size.

Cheaper 2 bed flats are £900 per month to rent, according to this article. If you add in £200 council tax, £200 for utility bills, thats £1300 per month just to breathe. Add in another £400 for other things like food just to live and it comes to £1700. I make that £20,400. I haven't allowed for any luxuries or transport or any social life.

Someone would have to earn around £25,500 gross to have that money, so much for a Living wage of £18,900 gross per year for a full time job.

For welfare benefits DWP would have to pay around £1,450 per month - £17,400.

www.bbc.co.uk

Housing Benefit freeze leaves renters '£200 short' every month

People on housing benefit say there are hardly any homes available to rent at prices they can afford.
www.bbc.co.uk
 
Redwurzel said:
This story shows how typical rents for property are rising and some in society are getting really squeezed.

Trowbridge is not a touristy town or a place people go on large numbers to retire to. Neither is it a commuter town for London. It was known as a manufacturing town and the biggest employer is a frozen food company. Its like Darlington, but just under half of the size.

Cheaper 2 bed flats are £900 per month to rent, according to this article. If you add in £200 council tax, £200 for utility bills, thats £1300 per month just to breathe. Add in another £400 for other things like food just to live and it comes to £1700. I make that £20,400. I haven't allowed for any luxuries or transport or any social life.

Someone would have to earn around £25,500 gross to have that money, so much for a Living wage of £18,900 gross per year for a full time job.

For welfare benefits DWP would have to pay around £1,450 per month - £17,400.

www.bbc.co.uk

Housing Benefit freeze leaves renters '£200 short' every month

People on housing benefit say there are hardly any homes available to rent at prices they can afford.
www.bbc.co.uk
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It blows my mind how asleep the world has become to the disgusting government. People think voting for the same scum will bring about change. We’ve had enough evidence but unfortunately everyone is asleep. We’ve had Tory and Tory lite since the dawn of so called capitalism. The government in 1919 asked its citizens to sell their gold sovereigns to them for the strong £1. So using that logic £1 should be worth £400. That figure indicates the abject failure of capitalism for the majority. In 1953 an average house price, in today’s money was 67K. In 1971, a Postie could raise a family, his wife didn’t have to work. He could buy a house and a car and afford family holidays. That was the promise of capitalism in action. What happened? Thatcher was just the residue of the cosy venture capitalists who basically took over politics.
 
I was looking for an overseas colleague for a place to rent in east cleveland recently and there was a terraced streethouse in carlin how listed on Rightmove for £1400 pcm. Absolutely staggering
 
That's because we rely on private landlords and their costs have gone through the roof with the tax changes and increased in mortgage rates. Those who have many multiple properties (Tory donors) can dodge the tax implications nicely.

But just like the government allow local councils to take the flack for Council tax rises, they'll point the finger and look the other way.

They've run the UK into the ground. We're a basket case of a country.
 
Glover_elbow said:
I was looking for an overseas colleague for a place to rent in east cleveland recently and there was a terraced streethouse in carlin how listed on Rightmove for £1400 pcm. Absolutely staggering
Click to expand...
That is staggering - a lot can be bought for around £80k. so in nearly 57 months the house would be paid for!

www.bing.com

Bing Real Estate - Home sales and rental listings

Find your perfect home on Microsoft Bing. Browse sale and rental listings and compare home values.
www.bing.com www.bing.com
 
Boro Devonport said:
It blows my mind how asleep the world has become to the disgusting government. People think voting for the same scum will bring about change. We’ve had enough evidence but unfortunately everyone is asleep. We’ve had Tory and Tory lite since the dawn of so called capitalism. The government in 1919 asked its citizens to sell their gold sovereigns to them for the strong £1. So using that logic £1 should be worth £400. That figure indicates the abject failure of capitalism for the majority. In 1953 an average house price, in today’s money was 67K. In 1971, a Postie could raise a family, his wife didn’t have to work. He could buy a house and a car and afford family holidays. That was the promise of capitalism in action. What happened? Thatcher was just the residue of the cosy venture capitalists who basically took over politics.
Click to expand...
Wages have gone up about 3% but house prices/rents by 8% a year - take that back to 1971 and project to 2023 and and you are going to get massive changes in affordability.

Lack of adequate property building is on one issue - if the number of households increase by 500k a year and we only build 200k houses and pull down others, we are going to have property shortages and hence rising prices.

Wages have bee surpressed to some extent by globalisation of labour and products and services. Before 1990 there were no Chinese made goods in the UK, now they are the biggest supplier. Vietnam is now under cutting China, so your phone, TV, trainers maybe Vietnam. Your clothes Bangledesh rather than Grangetown.
 
I've had this argument with many people, some on here, that were crowing about house prices coming down with the rise in interest rates because that is what people need to get on the housing ladder. Those people are morons because the price of the house is almost irrelevant if the monthly payments can't be met and rising rates helps nobody buy houses (except the very wealthy that can scoop them all up below market rate once repossessions accelerate). The biggest knock-on though is those people saving to get on the housing ladder will most likely be renting so their ability to save will be massively hampered by the rent increases. Landlords have properties to make money. They aren't just going to suck up the rate rises, they will pass them on.

Raising interest rates in the current financial climate is like setting your sofa on fire so you don't feel the cold from your draughty windows.
 
Muttley said:
Do you have the balls for that?

Seriously, the "rental trap" is a really serious problem for young people. We need to reduce the profitability of this in some way so that young people can afford to buy their own homes at reasonable prices.
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Why should the profitability be reduced?

I'm a private landlord and rely the income, obviously.

Some of my tenants can't afford the deposit for a mortgage, but in some cases they have chosen to sell up and rent, or just prefer to do so.

The real issue is that there's not enough housing because this government's housing policy has been abject for over a decade.
 
NYboro said:
Try over 40 years. Thatcher's right to buy.
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Correct, the journey to where we are now began under Thatcher.

Her whole ideology was shameful, but what is the most concerning is the increasing amount of Thatcherists within the current Conservative party.
 
Interest rates had to go up we can't live in a world of 0.25% base interest rates and inflation even at 3%. It actually about 6% inflation at present.

If more properties were built prices would come down. To be fair to most UK Governments they have tried to encourage house building, but nimbies stop them hitting the needed targets. Political by election defeats have been attributed to "crass governments concreting the green belt" especially in the South of England.
 
NYboro said:
Try over 40 years. Thatcher's right to buy.
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I agree social/public housing has almost vanished - it used to be about a third of new housing. Private housing figure are about correct on number of units, but it the onme third loss of other housing taht cause the main part of the shortfall. When people say affordable housing all the mean are 2 bed private properties or 3 beds available to part buy/rent.
 
Redwurzel said:
Interest rates had to go up we can't live in a world of 0.25% base interest rates and inflation even at 3%. It actually about 6% inflation at present.
Click to expand...
Why not? Why do we have to pay hundreds of thousands of pounds to banks to allow us to buy somewhere to live? Mortgages on places to live and borrowing for other purposes can, and should, be kept separate.

For a £250k 35 year mortgage at 2% interest you'll pay about £70k to the bank, at 6% you'll pay about £150k. Why is that ok? It's 60% of the purchase price. The reason it is "ok" of course is because rich people don't pay it. They need something they buy it and avoid the costs of financing it or even worse, they just take a mortgage and have someone else pay the rent. They also avoid tax. They contribute **** all to society and just take, take, take. The rest of us are paying half our (underpaid) wages back in tax, half of the remaining back on financing unavoidable debt and then everything else we buy is taxed as well. We're doing nothing but contributing to a system that constantly funnels money away from us to them and then they have people arguing amongst themselves and justifying it.
 
Yes it's dreadful. They need to build fuckloads of council houses. This won't happen as people are simply not interested. A home is an investment for the majority of people, they want their investment to go up and if this **** over other people that's their tough ****.

It's not down to landlords. It's not down to the Tories. It's down to human beings being human beings. People simply won't vote for things that make them less well off. So you won't find the Tories or labour starting the massive social house building that is needed.
 
Billy69_uk said:
landlords taking advantage of people and rinsing them at every opportunity.

Who could ave predicted that.
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I've no doubt there's issues within that but it's just market forces. See my previous post - you're the person blaming councils for raising Council tax when the government have picked their pockets.

A business raises prices when they incur increased costs. The lack of supply means that these landlords are essentially businesses with very little competition.

Housing shouldn't need to be a commodity.

Effective management of an economy is possible but not with these ***** in charge. This is all a choice
 
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