Rents hit fresh high as lack of homes available continues

[s1962a]

https://www.bbc.co.uk/news/business-65422183

There is a shortage of homes for rent, demand is high, and not everybody can afford to buy, so naturally rents will reflect that . The government need to build more homes - that is unanimous.

[Super Sonic]

It's almost as if people in the government have a vested interest in keeping rent and house prices high. Any of them have property portfolios?

[Biggy Stardust]

Super Sonic said:

It's almost as if people in the government have a vested interest in keeping rent and house prices high. Any of them have property portfolios?

Don't ascribe to malice that which can be explained by stupidity.

[Catastrophic Poo]

Saw a headline the other day which said some had been ‘forced into buying’.

I presume that means buying something less than they want. I also presume these are edgecases being hyped up.

[Mojooo]

Govt need to deal with Air BnB type places.

I know someone who rents out two city centre flats on Air BnB - he makes more money renting them out some days than renting out a whole month to a tenant. How many possible homes are being under utilised when we have hotel capacity for those types of people?

[s1962a]

Mojooo said:

Govt need to deal with Air BnB type places.

I know someone who rents out two city centre flats on Air BnB - he makes more money renting them out some days than renting out a whole month to a tenant. How many possible homes are being under utilised when we have hotel capacity for those types of people?

Thats a good point. I'm sure there are many properties out of circulation due to this - don't holiday lets get special tax exemptions too?

[vikingaero]

s1962a said:

https://www.bbc.co.uk/news/business-65422183

There is a shortage of homes for rent, demand is high, and not everybody can afford to buy, so naturally rents will reflect that . The government need to build more homes - that is unanimous.

What is the solution?

To keeping building, which many communities don't want.
Interest rates have put the kybosh on many Landlords.
Migration of 500+ per day is putting pressure on social housing as they transition from temporary to more permanent accommodation.

[LimaDelta]

If they are all being rented out at those prices then one could argue they are too cheap, not too expensive. Surely they only become too expensive when there is a abundance of empty properties on the market?

[ChemicalChaos]

It's almost as if no one could have predicted that driving thousands of landlords to sell up due to ever-increasing taxes and regulations, in an economy where people who rent can't afford to buy anyway, would result in a shortage?

[s1962a]

vikingaero said:

s1962a said:

https://www.bbc.co.uk/news/business-65422183

There is a shortage of homes for rent, demand is high, and not everybody can afford to buy, so naturally rents will reflect that . The government need to build more homes - that is unanimous.

What is the solution?

To keeping building, which many communities don't want.
Interest rates have put the kybosh on many Landlords.
Migration of 500+ per day is putting pressure on social housing as they transition from temporary to more permanent accommodation.

I think one solution would be to treat private landlords the same as commercial ones, and allow mortgage interest to be offset against profits.

Agree that communities don't want to keep building as the UK population grows, so no solution there. Did you know that last year we had 500k net migration to the UK?

Some people will be getting rich off the back of these rent rises, and have no incentive to wanting them reduced.

[Carl_Manchester]

LimaDelta said:

If they are all being rented out at those prices then one could argue they are too cheap, not too expensive. Surely they only become too expensive when there is a abundance of empty properties on the market?

Air BNB probably having a bigger effect than politicians want to admit to.

[ZedLeg]

LimaDelta said:

If they are all being rented out at those prices then one could argue they are too cheap, not too expensive. Surely they only become too expensive when there is a abundance of empty properties on the market?

Even taking Air bnb out of it, people still need somewhere to live so they pay the rent. It just eats more and more of your income, mines is currently 42% of my monthly. Lots of people are paying over half.

[Vanden Saab]

Bloody landlords tax the fk out of them...
There will be less houses to rent when they sell up and rents will rise...
Don't be silly...oh wait ..

[Biggy Stardust]

ChemicalChaos said:

It's almost as if no one could have predicted that driving thousands of landlords to sell up due to ever-increasing taxes and regulations, in an economy where people who rent can't afford to buy anyway, would result in a shortage?

This happened in Ireland a few years ago.

Nobody could possibly have anticipated that doing the exact same thing in UK could have the exact same consequences. (Ok, the NRLA predicted it & told the government repeatedly, but who would have expected them to know anything?)

[Oakey]

Vanden Saab said:

Bloody landlords tax the fk out of them...
There will be less houses to rent when they sell up and rents will rise...
Don't be silly...oh wait ..

Landlords were probably saying the same when more rights were brought in to protect tenants in 1911 which resulted in a big shift in people.owning their homes rather than renting them.

[Louis Balfour]

Carl_Manchester said:

LimaDelta said:

If they are all being rented out at those prices then one could argue they are too cheap, not too expensive. Surely they only become too expensive when there is a abundance of empty properties on the market?

Air BNB probably having a bigger effect than politicians want to admit to.

It’s part of the problem certainly and the blame for that can be attributed to George Osborne. If you tax landlords more they will find ways of avoiding the additional tax. Shouldn’t play politics with people’s business / investments.

But a lot of landlords have pulled out of the private letting market for other reasons. Rising mortgage costs, regulation and the courts.

It’s very, very difficult to obtain possession through the courts and some landlords would rather leave property empty than let it, for this reason.

[Biker 1]

vikingaero said:

What is the solution?

To keeping building

Of course this is the only way to proceed, but due to our broken planning 'system', uncooperative local authorities & vast armies of NYMBYs, supply simply cannot keep up with demand.

[ChemicalChaos]

Biker 1 said:

vikingaero said:

What is the solution?

To keeping building

Of course this is the only way to proceed, but due to our broken planning 'system', uncooperative local authorities & vast armies of NYMBYs, supply simply cannot keep up with demand.

So I assume we keep building en-masse until every square foot of land is paved over and 98% of the worlds population live here?

[ZedLeg]

ChemicalChaos said:

Biker 1 said:

vikingaero said:

What is the solution?

To keeping building

Of course this is the only way to proceed, but due to our broken planning 'system', uncooperative local authorities & vast armies of NYMBYs, supply simply cannot keep up with demand.

So I assume we keep building en-masse until every square foot of land is paved over and 98% of the worlds population live here?

If only there was any option between all or nothing, you'd think we would have invented a word for that by now.

[s1962a]

ChemicalChaos said:

So I assume we keep building en-masse until every square foot of land is paved over and 98% of the worlds population live here?

You ever taken a flight and looked upon the glorious land that is the UK? We are no way near the doomsday scenario you portray.