Crazy rental prices

[Dave Bloke]

Someone on another site is bragging about this place he's done up and it letting

https://www.rightmove.co.uk/properties/141021461#/?channel=RES_LET

1950 a month for somewhere that looks very uncomfortable to live in. In worthing of all places!

Who would have nearly 2 grand a month to live in a barn in Costa del Geriatrica? Are rental prices really that high now?

[One percent]

4 minutes ago, Dave Bloke said:

Someone on another site is bragging about this place he's done up and it letting

https://www.rightmove.co.uk/properties/141021461#/?channel=RES_LET

1950 a month for somewhere that looks very uncomfortable to live in. In worthing of all places!

Who would have nearly 2 grand a month to live in a barn in Costa del Geriatrica? Are rental prices really that high now?

Itll cost a fortune to heat too.  Bit like living in a (very expensive) barn. 

[spygirl]

There will be a a year or two of rental price turbulence, as coof n IO BTL work its way.

90%+ of renters are either low income/social, or young working people.

IN terms of doleys then rents gravitate to LHA.

IN terms of young workers then there is a feedback loop - crank up rents then noone turns up and look or work elsewhere.

I nterms of where we are and where we are going.

One, expect benefit reform to remove migrant demand.

Two,, walking from the mainly 8m single parents on UC will take time.

Three, linked to Take This job, there are massive strucuctral changes at work at the mo. Expensive housing has destroyed labour  supply in South.

 

 

[JoeDavola]

7 hours ago, Dave Bloke said:

Are rental prices really that high now?

Yes. Yes they are.

Mate of my brother is renting with his burd and theyve just moved - paying the best part of a grand for a 2 bed terrace in East Belfast apparently.

If you are single and don't own or have 6 figures saved you are pretty fucked now when it comes to putting a roof over your head in much of the developed world.

[Joncrete Cungle]

Renting a similar sized house in our small market town with gardens would be at least twice our current  minimum  monthly mortgage payment.

[UmBongo]

The rule of thumb on private rents is that they should be no more than a third of a household's income. Or at least it was that around 15 years ago. So that place would require a combined income of around £6,000 a month.

£895 pcm + for a bog standard house with 2 or 3 bedrooms in my city. There are waiting lists for these types of homes now. 

There are a couple of single guys in their early 30s where I work. They still live at home. Admittedly the work is low paid. Fuck knows how on Earth they are going to move on in their lives unless they strike it lucky with much better paying jobs.  

[Cosmic]

Just moving in to a new rental now in order to sell mine (we've sold the GFs and then we'll buy together a 20+year home end of 24/25). A painful £1100 for a 3 bed early 2000s. Very little with a garage and in the right area was coming up, signed up for 3 and tbh the agents were useless, still waiting to hear back from one and its still listed...

Annoyingly a few miles up the road, but still in a suitable location, one has been reduced from £1200 to £1000 and its nicer... would be suitable, but we're in now. Coulda'woulda'shoulda...

Painful is not the word, the most I've ever spent a month on rent/mortgage is £300 before this!

[Stuey]

I think if rents like this are achieved, and you can choose a good tenant, then BLT is surely going to be worth a look at once interest rates fall from their current highs (this could be as early as December). 

[spygirl]

23 hours ago, spygirl said:

There will be a a year or two of rental price turbulence, as coof n IO BTL work its way.

90%+ of renters are either low income/social, or young working people.

IN terms of doleys then rents gravitate to LHA.

IN terms of young workers then there is a feedback loop - crank up rents then noone turns up and look or work elsewhere.

I nterms of where we are and where we are going.

One, expect benefit reform to remove migrant demand.

Two,, walking from the mainly 8m single parents on UC will take time.

Three, linked to Take This job, there are massive strucuctral changes at work at the mo. Expensive housing has destroyed labour  supply in South.

 

 

Housing costs eat up more than 30 per cent of median income for London renting households, ONS figures show

Valentina Romei in London

Households of London renters paid more than 30 per cent of their income on rent last year, according to official data highlighting the risks of the current record rise in rental costs.

The figure for London was the highest anywhere in the UK, according to figures on Monday from the Office for National Statistics for the year to March 2022.

[spygirl]

More apt for Death of London thread.

If you are an org that needs skilled people in London/Se then your wage bill and/or attrition is going thru the roof.

 

[MrLibertyRedux]

16 hours ago, JoeDavola said:

Yes. Yes they are.

Mate of my brother is renting with his burd and theyve just moved - paying the best part of a grand for a 2 bed terrace in East Belfast apparently.

If you are single and don't own or have 6 figures saved you are pretty fucked now when it comes to putting a roof over your head in much of the developed world.

My old place in Nottingham was up for rent for 400 quid a month more than I was paying before Covid this summer.

[JoeDavola]

1 hour ago, MrLibertyRedux said:

My old place in Nottingham was up for rent for 400 quid a month more than I was paying before Covid this summer.

Bloke I know who used to live in my apartment block for years had to go move in with his sister a few months back as the LL upped his rent by just under 30% - he's retired and he would have had to find an extra £2400 a year. Someone else took it at the higher rent straight away.

[MrLibertyRedux]

37 minutes ago, JoeDavola said:

Bloke I know who used to live in my apartment block for years had to go move in with his sister a few months back as the LL upped his rent by just under 30% - he's retired and he would have had to find an extra £2400 a year. Someone else took it at the higher rent straight away.

Fuck - I've just checked and they are AirBnB'ing it!

500 quids for 3 nights in November.

[Stuey]

18 minutes ago, MrLibertyRedux said:

Fuck - I've just checked and they are AirBnB'ing it!

500 quids for 3 nights in November.

It might be contrarian for here but BLT is certainly worth investigating with money like that available. 👍

[JoeDavola]

13 minutes ago, Stuey said:

It might be contrarian for here but BLT is certainly worth investigating with money like that available. 👍

I will refrain from making a smart arse comment about the BLT typo, but yes the income from airbnb does seem to be incredible.

You'd need to talk to someone about the reality of it, having to handle bookings, getting the place cleaned and prepped after each person leaves etc...and I guess for a higher rate tax payer the gov is going to take half of the income anyway? (I have no doubt someone will be along to tell me how easy tax evasion is but I'd not bank on that.)

There have been a few ex airbnb flats for sale recently which suggest it's not the path to guaranteed riches that it may appear. I think the best way to play it is perhaps to airbnb a house that you get utility value out of yourself - either your own house while your off on holiday, or if you happen to have a holiday home then airbnb that out a few months a year to pay for the maintenance.

Edited October 23, 2023 by JoeDavola

[MrLibertyRedux]

10 minutes ago, Stuey said:

It might be contrarian for here but BLT is certainly worth investigating with money like that available. 👍

Yes, although I'd be interested to know what the occupancy rate is. New owners this summer so I'm wondering if the monthly rental price they were kite flying didn't find any takers.

I'm due sugery at the begining of December so should be fixed up for a visit at Christmas, I should be able to find out more info then.

[ashestoashes]

7 hours ago, Stuey said:

I think if rents like this are achieved, and you can choose a good tenant, then BLT is surely going to be worth a look at once interest rates fall from their current highs (this could be as early as December). 

interest rates may fall, but it might be impossible to get a mortgage

[Democorruptcy]

17 hours ago, UmBongo said:

The rule of thumb on private rents is that they should be no more than a third of a household's income. Or at least it was that around 15 years ago. So that place would require a combined income of around £6,000 a month.

£895 pcm + for a bog standard house with 2 or 3 bedrooms in my city. There are waiting lists for these types of homes now. 

There are a couple of single guys in their early 30s where I work. They still live at home. Admittedly the work is low paid. Fuck knows how on Earth they are going to move on in their lives unless they strike it lucky with much better paying jobs.  

Re the 3rd of income that must be gross not net?

[UmBongo]

1 minute ago, Democorruptcy said:

Re the 3rd of income that must be gross not net?

I'm not sure to be honest. 

[Democorruptcy]

Just now, UmBongo said:

I'm not sure to be honest. 

I've just seen a rental £700 a month but must have an income of at least £21k. It didn't say gross or net. 

[UmBongo]

2 minutes ago, Democorruptcy said:

I've just seen a rental £700 a month but must have an income of at least £21k. It didn't say gross or net. 

I'd imagine gross. Letting Agents will perhaps do some due diligence with applicants so I suppose there is some leeway. 

8.5 years ago I took on a rental at £550 a month when I was on £16-17,000 a year so I think I was under the 3 x gross salary rule of thumb. 

[Democorruptcy]

34 minutes ago, JoeDavola said:

I will refrain from making a smart arse comment about the BLT typo, but yes the income from airbnb does seem to be incredible.

You'd need to talk to someone about the reality of it, having to handle bookings, getting the place cleaned and prepped after each person leaves etc...and I guess for a higher rate tax payer the gov is going to take half of the income anyway? (I have no doubt someone will be along to tell me how easy tax evasion is but I'd not bank on that.)

There have been a few ex airbnb flats for sale recently which suggest it's not the path to guaranteed riches that it may appear. I think the best way to play it is perhaps to airbnb a house that you get utility value out of yourself - either your own house while your off on holiday, or if you happen to have a holiday home then airbnb that out a few months a year to pay for the maintenance.

I know someone with a static caravan on a farm. It's been fully booked the last 2 summers. Owner's daughter told her to switch to Airbnb because you make more with the cleaning fee. She put it on Airbnb and got a booking the next weekend but wasn't happy she didn't get paid until long after they had left. Not one booking the next 6 weeks!

[Wight Flight]

43 minutes ago, UmBongo said:

I'd imagine gross. Letting Agents will perhaps do some due diligence with applicants so I suppose there is some leeway. 

8.5 years ago I took on a rental at £550 a month when I was on £16-17,000 a year so I think I was under the 3 x gross salary rule of thumb. 

It is gross. Your income needs to be 2.5x the annual rental. I don't think the landlord can get insurance otherwise.

Until last year it was 3x, but they reduced it so that they could put the rents up.

[Joxer]

A two bed terrace on my street has two filipino couples (each with a young child) and a single Indian lady living in it. I can tell by their uniforms they work in a local care home.

The high rents start making sense when you realise each bedroom has 2.5 workers paying for it.

[spygirl]

17 minutes ago, Joxer said:

A two bed terrace on my street has two filipino couples (each with a young child) and a single Indian lady living in it. I can tell by their uniforms they work in a local care home.

The high rents start making sense when you realise each bedroom has 2.5 workers paying for it.

WHatever benefit/money the Fillipinos generate forthe UK will be negated by the 2 kids.