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Rents rise 4% in just 12 months

The cost of renting is expected to rise further still as demand soars and decent properties remain in short supply.

 
Rents rise 4% in just 12 months

The cost of renting has shot up 4.3% in the last 12 months alone, according to surveyors, who expect another 4% rise over the next year.

The North West saw rents increase the most in the last quarter, rising 6.9%, according to the Royal Institution of Chartered Surveyors (Rics). Rents in Wales, on the other hand, have succeeded in staying at the same level over the last 12 months.

The upwards march in rents is ‘unsurprising’, however, given so many would-be buyers are still locked out of the sales market, said Rics.

Scarce mortgage finance and large deposits requirements are just two examples of barriers to home ownership, said Peter Bolton King, of Rics.

Yet the shortage of good quality properties for tenants to move into appears to be the main reason rents are steadily rising.

While demand continued to grow in the three months to July – albeit it at a slower pace than in previous quarters – the amount of new properties coming onto the market fell further.  

In fact, according to Rics, demand has now outpaced supply in every quarter since the first half of 2009.

What remains to be seen is whether tenants, despite their interest, will be willing to meet the increasing rents being demanded by landlords,’ said Bolton King.

‘Barriers to home ownership need to be addressed alongside the shortage of new stock coming to the market,’ he urged.

27 comments so far. Why not have your say?

Jim via mobile

Aug 10, 2012 at 07:48

Wow. Just wow. And we wonder why the UK economy is stagnating? We are being bleed dry by unproductive slumlord leeches.

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Jonathan

Aug 10, 2012 at 12:07

4% is less than or about the same as inflation so no surprise really.

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Dislexic Landlord

Aug 10, 2012 at 12:09

FAO Jim

Do you know something dont class all landlords as scum think before you type

Ive just had a meeting with one of my Tenants to arrange the fitting of a new kitched Priced around £3000

I was checking with the property file and noted that the Tenant moved in to her home 5 years ago and I havent put up her rent in that time and I have no reason to do so in the future

You have to think outside of the greed box in bussiness If you have a good Customer ie Tenant who causes you no problems pays rent on time ect ect why would a Landlord want to upset the customer with a rent increse every year

For what its worth I have never incressed rent on a Tenant its good bussiness sence Im no angel but you have to give and take in bussiness

and being a Landlord is a very long term game its not get rich quick

You are right of course there are some Landlords who live hand to mouth and will take what ever they can

But you get that in any bussiness which I think is a very shallow short term view

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philip windsor

Aug 10, 2012 at 13:34

Interest on my savings are virtually nil, so why shouldn't I hike up my rents to make up for these losses if I can?

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David Trigg

Aug 10, 2012 at 15:02

Dislexic Landlord is absolutely right.

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Matthew Wie

Aug 10, 2012 at 15:12

I agree with Dyslexic Landlord, and Dyslexic David Trigg.

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jo soap

Aug 10, 2012 at 17:31

i always wanted to be a `landlord` but unfortunately i went on to pass exams in English language `ect` and found i didn`t qualify because i was too smart sos i was.

You`re a shower of piranahs or is that a shoal of pariahs who are smothering the young of our country. I`ve been a right wing capitalist all my life but i`d happily stand `most` of you against a wall, mostly i would excuse the unintentional landlord.

`interest on my savings are virtually nil`..... you poor thing, if you`re such a `risk taker` then get into the stock market and maybe even do a bit of good for your country as well as yourself.

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Prof Eman

Aug 10, 2012 at 18:03

jo soap

'interest on my savings are virtually nil' ... -Who is to blame for that, the BTL landlord

you poor thing, if you're such a 'risk taker' then get into the stock market. - I thought we lived in a democracy and in accordance with market forces could choose what risk we want to take, when, where, and what in, with our own savings.

and maybe even do a bit of good for your country as well as yourself. -Did not realise that BTL properties were not good for the economy. Wonder what would happen to the housing market without them? Did not realise that to do good to yourself and the country required everyone with savings to play the stock market.

Jo, supply and demand rules OK, right wingers like you included.

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Dislexic Landlord

Aug 10, 2012 at 18:14

FAO Jo Soap

You may be well able to write English better than me but you show how person who is So well Educated can sound so thick and very bad mannered

Im not supprised you only have your saveings to live on I bet the only investmenst and risks you have taken is crossing the Road to open a Building Socierty Account

you know before I did Become a Landlord I looked at the top 100 Richest persons in the UK

The Likes of HM Queen and Duke Of Westmister are the largest Landlords in the UK

So you may aswell line up them too and shoot them along with myself and I will be in the company folks who know good Manners

Landlording is as old as the hills its always been there just look at your Country Estates

As for investing in Shares Ive stareted doing that too it dosent take a great deal of brains to click a mouse and do a deal its far far easier than being a Landlord I can tell you so maybe thats why I do it

just a small fact for you 95% of land in the UK is owend by 5% of the population

so in a strange way BTL gives the working classes a chance of owning assets just like the Queen

You really are ignorant and would not like you sitting next to me at a dinnner party you most likely dont know which Knife and Fork to use

You let yourself down with such comments

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Paul Barrett

Aug 10, 2012 at 18:16

How naive joe soap is.

If it wasn't for LL risking their capital to provide the likes of him somewhere to live there wouldn't be anywhere for him to live.

Does he strangely imagine that he will be able to afford to buy.

I think not lenders have increased their lending criteria.

This ,so unless you have a full-time job paying about £50000 and and a £60000 deposit you stand no chance of purchasing.

Nobody is going to reduce the price of their property to sell it.

You don't have to these days as there are always loads of prospective tenants.

Only divorce, death and separation will cause distressed property sales., but even then you still need massive deposits.

You can't get IO residential mortgages now unless you have a 50£deposit and have a repayment vehicle in place that the bank accepts.

Effectively that has meant the end of the IO residential mortgage.

These tenants have to realise that without LL they would have nowhere to live as they cannot afford to buy the properties themselves.

House prices will not reduce to the level that these frustrated buyers can afford to buy.

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jo soap

Aug 10, 2012 at 18:33

prof Emam, that would be about right.

BTL properties/landlords are not good for the economy, they keep house valuations artificially high keeping, mostly, first time buyers of the housing ladder while ironically borrowing the savings of these same kids to purchase in competition with them. High rents mean that money is not there to be spent on manufactured products. When there is not the `supply` the demand should be for those in most need as it would be in a shortage of food, another staple, not those greedy basars who can afford it with an i`m alright Jack ! .....but bankers love you and that says it all.

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Dislexic Landlord

Aug 10, 2012 at 18:55

Jo I dont quite follow your meaning here

I do fully understand that FTB have a problem getting Mortgages at present but that is not the fault of a Landlord

when I borrow money I am charged far higher rates than Homeowners and you should see the fees banks charge 3.5% of what is borrowed

Think also about the amount of wor Landlords give other service industrys

Estate Agents

Surveyors

Planners

HMO Licances

Trades men

The list goes on and on

I stopped buying property in 2005 because I coud not complet with the FTB and it was FTB that fuled the proerty market

FTB buy property to live in and its an emotional buy very differant from the Landlord

For what its worth I want to see FTB in the market they are the gravy that makes the property world move

Most proffesional Landlords buy on yeild and yes lots of novice BTL Landlords who work for a liveing were sucked into the BTL market with the Likes of Property Clubs such as Insidetrack

and it was the deals at the time which brought the Banking Market to its knees

As Ive said BTL is not new but saying that the world we live in now has majorproblems as we all know but you have too look at a much wider view

I know it looks as if Landlords have it all there way but the FTB will return THEY HAVE TOO otherwise the property market will never recover

and when they do intrest rates will rise and once again you will have 4 to 6% on yoursaveings

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jo soap

Aug 10, 2012 at 18:59

hehehe there you are, the Barretts (an unfortunate name for a small property owner) the Emams and Triggs of this board, look to your left on the dining table and see that fat lady struggling to put a sentence together, no, it`s not the Queen it`s one of your compatriots in business, a landlady,,, yes, yes, a lovely class of people you make.

Me, well as it happens i have many vct`s and ezpt`s. IT`s , UT`s, u name it (wouldn`t expect you to know what they are but you can look them up ) but to help, the ezpt is property related. I retired at 48 and have enough to see me out so don`t really care how many million you have more than me (but i doubt it the way you defend yourselves) but i was never tempted to be the Landlord over any unfortunate.

I probably have shares in harmful things, tobacco, armaments ( with BAE,,,, dividend paying about 6%, for the poor fool whose savings are` paying virtually nil`) etc. but I`ve never had to put anybody out of their home.

I don`t wish you well, i don`t consider you business people and i do wish the government would look more closely at rent caps

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Prof Eman

Aug 10, 2012 at 19:02

jo soap

Not altogether clear what you are saying.

If it is that bankers/financial services are to blame for the current mess in the housing sector as well as just about every where else, together with mismanagement of the economy, then I will go along with you. If you are suggesting it is the private landlord then I do not go along with you.

As regards markets it is known they suffer from imperfections even gyrations, there will be homes winners and losers, but in the long term equilibrium should prevail.

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Paul Barrett

Aug 10, 2012 at 19:02

Again joe soap you really show your lack of understanding about basic economics.

so all this money that would be available to be spent on manufactured goods.

Do you suggest that the money would be spent on buying manufactured goods made in the UK...wise up mate...............when was the last time you bought a British TV!

Extra monies would just cause imports to be sucked in.

It would just mean more British income going to the Chinese.

Without LL tenants would have nowhere to live.

they could not aford to buy as prices will NOT reduce.

Those days are gone.

Prices will remain static for decades.

This does meand that the thrifty will be able to save for a deposit and then they might be able to afford a property.

Doing this means sacrificing the going out and spending money life, not having the latest iphone; effectively living like a church mouse for years.

Very few people are prepared to do this which is why they will always be tenants.

The ndays have gone when you could have it all.

What you have to do is save and work hard and then you MIGHT be a ble to buy.

However in the menantime at least a LL will have provided you with somewhere to live.

Lucky for you he didn't bother with investing in the stock market which is at the level it was 13 years ago.

Investing in property 13 years ago who would have outperformed who......maybe the LL...what do you think!!?

There is plenty of demand for property just no supply as people are NOT prepared to sell at the prices can now only afford.

Mortgage availability and deposit requirements are now far more onerous than when those properties were bought, say 10 years ago.

Wages will have to double before the likes of you could afford to buy.

You will also find deveopers who bought land are NOT prepared to build and not make the money they were expecting to.

They will wait for years for it to become worthwhile to build on the expensively purchased land.

A tenant should thank their luck stars if they find a decent property and LL and hang onto them for all there worth.

Good rental properties are scarce.

Accepting you have to be a tenant, you at least wnat a decent place until eventually you may be able to afford to purchase your own property.

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ThisIsMe

Aug 10, 2012 at 19:22

Landlord bashing seems to be a sport for the ignorant. Then when landlords give up ther are complaints from the same people that there are no properties to rent. Why woulo anyone bother with the BTL business?

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Paul Barrett

Aug 10, 2012 at 19:40

So Joe soap you are sorted financially.

That is good for you.

Perhaps some sympathy for people who are not aswell as endowed as you and who look to incresing teir income as the savings and stock market are bust.

Housing is a good income generator.

For the little people, one of which you seemingly are not, struggle to make some decent returns.

Not everyone has or would be able to do what you have achieved.

Nobody is asying that LL is the only way to riches.

Indeed from personal experience it has not been.

However given the choice I prefer to be a little LL rather than a big businessman who can retire at 48.

good luck to you.

However to pour scorn on little people who are just trying to obtain a better return on their capital than may be achieved in an ISA or stock market.

I would conjecture that it is the likes of you who successfully gambled that to a large extent has cost the UK population billions and destroyed the UK economy.

We do not need city gamblers, we need long term investment views, and not to play to the shareholder gallery.

Short-termism has caused devastation to this country lead by -ankers like you..

We don't need gamblers like you. we need solid investments for the long term provisioning infrastructure for the population as a whole.

Rental accommodation is one part of that equation.

The builders and govt do not seem minded to build these houses.

Therefore the only way tenl have somewhere to live is if little people invest in BTL property so tenants have somewhere to stay.

LL invest for the long term hoping that tenants stay for the long term.

It is NOT an epheremal business.

LL are looking at investment periods of 30 years or more if they start young.

Give me a LL investing for tenants over a -anker any day of the week.

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jo soap

Aug 10, 2012 at 21:01

hehehehe what a hoot, it`s like starting a silly argument with a child and then seeing how flustered and angry they get when they find they have lost. I think i`m starting to feel a bit ashamed.

I now understand that there`s nothing else you lot could really do to make a living and most of you are probably unemployable too, which is all right, so was i and no i didn`t become a trader i just do that now when i`m not messing about on my little tractor.

It`s really been good for you lot then that the last few governments have been importing people to fill your hovels and i see on tv the sheds at the bottom of peoples gardens that have been converted for use for some of these unfortunates but no, i couldn`t do what you`re doing, i`d rather rob banks or be a counterfeiter or at least do something with a bit of honour attached.

Tell the truth; even though you try and justify your job you`re not really proud of it, are you ? This `new Britain` is to a great degree, your fault !

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Paul Barrett

Aug 10, 2012 at 23:53

Suggest you get back to your home under the bridge and wait until Billy Goat Gruff comes and gets you.

What an idiot you are.

Hope your tractor overturns and does you in. you will be no loss to the world

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ynys

Aug 11, 2012 at 00:59

I sorta sympathise with Jim. If all these landlords weren't around maybe young people would stand more chance of buying their own place.

But as an investor, I am more interested in the rent situation for commercial property.

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Paul Barrett

Aug 11, 2012 at 03:08

People just don't get it

If all the LL disappeared tomorrow people would still not

be able to buy property

Property will not reduce in price, buyers will NOT be able to achieve the lenders' criteria.

All that would happen is big corporations would buy up property or social housing organisations.Property will not be sold by lenders

Buyers will not get a look in.

It is the lenders failing to provide sufficient finance and the new onerous lending criteria

Lenders will become LL themselves, they will not take massive losses on value.

Buyers have to realise that LL are not the problem.

There are only 3 1/2 million PRS tenancies out there.

And only 1 1/2 million PRS properties.

That is an insignificant amount compared to the overall property market.

Immigration is one of the biggest factors on property shortages.

Since 1997 there has been over 3 million immigrants admitted.

No country can take on such a massive influx without SOME effect on infrastructure availability.

Stands to reason dunnit as Alf Garnett used to say!!

Even in the boom years of property building the most they managed in 1 year was 200000 properties.

250000 properties are needed per year just to meet todays pent up demand.

This will never happen.

Meanwhile EU migrants continue to flood in

All this migration is has been proven has been of NO economic benefit to the UK.

It has put inordinate pressure on countrywide infrastructure,depressed wages,and caused extreme detriment to the indigenous population, such as availabilty of housing for purchase and reduced supply of social housing.

Where do you think all these EU migrants and their famlies went.

They were given priority in social housing as they were considered to be in the greater housing need,

This policy was introduced by Labour.

The concept of being on the council house waiting list and gradually working your way up it was got rid of.

Instead you can be a Romanian gypsy with 5 kids and turn up here and immediately you will be given all the benefits and a property.

You will jump the queue as you will be considered to be in greater housing ned than a songle , caucasian male who has been on the council list for 10 years.

That is just the reality of it.

Then the benefits are sent back to romania where virtual palaces are built on the strength of their thieving and benefits.

To the EU Eastern Europe Accession countries we are like Treasure Island whwhich effectively showers them with benefits to give them a lifestyle they only have dreamed of.

Is it any wonder our low wage citizens can't afford to buy if all the immigrants have taken all the property rental and social.

If you returned ALL the migrants you woulkd have lots of property available to rent and buy.

None of this will ever happen until we close our borders to ALL immigrants and operate a policy like Australia.

This will NEVER happen.

These circumstances are not a LL's fault.

All we have done is risen to the challenge of providing accommodation where there is clearly a massive demand.

Whart are we suppiosed to do, just ignore it and say no I am not going to supply the tenant demand I am going to leave it so FTB can buy their own property.

Dream on this is a market economy.

All LL are doing is supplying a market demand, it is not our fault the demand is ther!

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Dislexic Landlord

Aug 11, 2012 at 08:13

I think when blogs become insults its time to step away

I dont think you will ever change Jo soaps opinion on Landlording

We all have our own views but bickering like this is not really very constructive

And when it comes down to I retired before you and I live in a bigger house than you its pointless

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Anonymous 1 needed this 'off the record'

Aug 11, 2012 at 08:40

You may have some chance as a good Landlord of making a small return in a Buy to Let situation if you own 50% equity in the property, as a Landlord you have to look forward to further decreases in the value of your property and in time increases in interest rates, not a win situation, but you do as a good Landlord provide a service to the community that you live in, and I believe that is a most important factor, which English people need to look at as a whole.

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Dislexic Landlord

Aug 11, 2012 at 08:48

Annon

Most buy to let lending is 30% deposit and my bank its capital and repayment and for what its worth i fix new lending over a 10 year period

and of course you are totaly right with you last comments

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Prof Eman

Aug 11, 2012 at 11:46

Paul Barrett

You have made some useful points, but then degenerate into immigrant bashing. A popular pastime for some.

I am not suggesting that the immigration system works in perfect ways but there are more than negatives to consider. Your comment "All this migration is has been proven has been of no economic benefit to the UK."

All the economic studies I have seen suggest the opposite. Please give examples of which economic studies support your point of view.

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jo soap

Aug 11, 2012 at 12:21

Yeah Imam, studies from your favoured Labour Party. The party that allows EVERYONE to become a LANDLORD, no losers here, eh?

You can`t argue with dopes like you...

Anyway the good news is.... i`ve just won £181.50 on the Euro !!! small potatoes really but with a good 2lb lobster to the side, heheh

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Jonathan

Aug 11, 2012 at 13:56

Rents are high but that's not really the fault of landlords,it's market forces. The cause of high rents is lack of properties, lack of building properties and too much immigration. There are not enough houses and the net immigration into the country is putting even more pressure on rents. This country is being run by businesses, we may one of 3 check-boxes on a voting form once every five years but businesses pay millions of pounds in lobbying and they are interested in increasing the population so they can sell more and employ the people they need. Businesses have no desire to provide more housing for the population so this is the situation we are in; a shortage of housing and a large amount of immigration.

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