Jump to content
DOSBODS
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

UK rents ‘are heading for a full year of declines’, says deposits service


sancho panza

Recommended Posts

Rental data-who to trust.Deposit Protection Service who receive multiples of deposits for their care or Estate Agent Your Move???

https://www.propertyindustryeye.com/uk-rents-are-heading-for-a-full-year-of-declines-says-deposits-service/

UK rents have fallen for the third consecutive quarter, the Deposit Protection Service (DPS) claims.

The decline – based on the DPS’s own database of rentals – showed that average monthly rents in the third quarter were £761, down from £764 in the second quarter of 2018.

This has been dubbed as a recession by the DPS.

If this trend continues, it will be only the second time there has been a full year of quarterly decreases since the DPS records began in 2007.

The DPS data also shows that average UK rent has now decreased £14 or 1.83% since the same period last year.

The east midlands experienced the greatest decrease down 2.47% on a quarterly basis to £569, while Northern Ireland had the largest increase, up 2.68% from £542 to £557 over the two quarters.

Meanwhile, average rents in the north-east of England remain the lowest in the UK at £529 per month.

Julian Foster, managing director at the DPS, said: “A third consecutive quarter of declining UK rents signals that there will be no immediate bounce back from the recession that hit the market last quarter.

“This negative period forms part of a slowdown that began in the summer of 2016, which we believe is linked to broader economic factors that are affecting spending power and demand.

“Another quarter of lower rents would mean the first full year of negative growth since the global financial crisis in 2008 and 2009, a significant threshold for the market.”

However, the DPS’s findings are at total odds with data from Your Move.

The agent said rents were up 2.3% annually in September to £861, led by a 4.3% boost in the south-west of England to £686 per month.

London was the only region with an annual drop, with rents down 1.3% to £1,271 per month, still making it the most expensive region.

Rents were pretty flat on a monthly basis, however, up just 0.06% across the UK.'

Link to comment
Share on other sites

4 hours ago, sancho panza said:

..........a 4.3% boost in the south-west of England to £686 per month.

I'm in the SW and I don't see this at all.  Rents are falling if anything...........maybe they're basing their analysis on Bristol which I don't keep an eye on so don't know.

Anyway it's another reason for a lean Christmas for EAs:) if PIE are correct.

Link to comment
Share on other sites

Mine just went up 10% (first increase since 2014), SE, one bed apartment. At the end of the market facing the most pressure. Having looked at some apartments whilst considering a move due to the increase, any point of moving was soon nipped in the bud with agent fees now at £500. Absolute piss take.

Link to comment
Share on other sites

56 minutes ago, janch said:

I'm in the SW and I don't see this at all.  Rents are falling if anything...........maybe they're basing their analysis on Bristol which I don't keep an eye on so don't know.

Anyway it's another reason for a lean Christmas for EAs:) if PIE are correct.

My comment from ToS:

Falling rents only show half the data.

The missing bit is the voids numbers, which is really recorded, not in a way you see.

Falling rents will only come out after a rental has been empty for a good few months.

Voids are brutal - each calendar month is -8%. Operating at sub 4% yields mean you needs thats 2 years 'profit' gone.

Link to comment
Share on other sites

5 hours ago, Admiral Pepe said:

Mine just went up 10% (first increase since 2014), SE, one bed apartment. At the end of the market facing the most pressure. Having looked at some apartments whilst considering a move due to the increase, any point of moving was soon nipped in the bud with agent fees now at £500. Absolute piss take.

Leave it for 6 months. 0 then.

Link to comment
Share on other sites

Interesting thread/quote on ToS, regarding agents contacting a landlord suggesting pushing up rents to meet a shortfall in revenue for the agents and not passing onto the landlord. I did wonder if this was part of the reason for my rent rise. They completely rebuffed my suggestion of a fair inflationary rent increase. Had I been more willing to move I would have called their bluff, as even a single month vacancy plus the decorating/refurb this place needs would have wiped their increase out. Then I suppose the agents don't care because they will get another £500 in fees. I wouldn't be surprised if they're actually trying to get long-standing tenants to move on.

Link to comment
Share on other sites

1 minute ago, Wig said:

There’s a letting agents near us with no fees to tenants. 

That's how it should be. Hopefully as Spy says in a short while that will find it's way to my neck of the woods. I don't begrudge paying some minor fees, but it's a complete piss take to charge £500 for typing a name into a computer to do a credit check and copying and pasting an agreement.

Link to comment
Share on other sites

It's illegal for recruitment agents to charge employees for finding them work. The same should apply to letting agents too. After all, they are milking landlords for all they can, as recruitment agents charge employers. Charging both the landlord and the tenant is certainly taking the piss. >:(

Link to comment
Share on other sites

On 26/10/2018 at 13:32, Admiral Pepe said:

Interesting thread/quote on ToS, regarding agents contacting a landlord suggesting pushing up rents to meet a shortfall in revenue for the agents and not passing onto the landlord. I did wonder if this was part of the reason for my rent rise. They completely rebuffed my suggestion of a fair inflationary rent increase. Had I been more willing to move I would have called their bluff, as even a single month vacancy plus the decorating/refurb this place needs would have wiped their increase out. Then I suppose the agents don't care because they will get another £500 in fees. I wouldn't be surprised if they're actually trying to get long-standing tenants to move on.

I once had an agent try and foist a rent rise on me.I contacted the LL who didn't know a thing about it.

A Countrywide operation...they were the worst I've expereinced.

Link to comment
Share on other sites

On 24/10/2018 at 15:51, spygirl said:

My comment from ToS:

Falling rents only show half the data.

The missing bit is the voids numbers, which is really recorded, not in a way you see.

Falling rents will only come out after a rental has been empty for a good few months.

Voids are brutal - each calendar month is -8%. Operating at sub 4% yields mean you needs thats 2 years 'profit' gone.

I've really not sat down and thought the figures through like this before and its blinding, especially where a landlord is trying to squeeze you for the last few cents...show him this and then say "Are you sure you NEED that last few pounds to make your `business` worthwhile?"

Link to comment
Share on other sites

On 26/10/2018 at 12:56, Admiral Pepe said:

That's how it should be. Hopefully as Spy says in a short while that will find it's way to my neck of the woods. I don't begrudge paying some minor fees, but it's a complete piss take to charge £500 for typing a name into a computer to do a credit check and copying and pasting an agreement.

Its also illegal.

Agents are only meant to charge costs i.e. time and any 3rd party service.

It should be no more than £100 for references and a credit check.

https://housingrights.org.uk/news/letting-agents-ordered-court-repay-fees-charged-tenants

https://www.theguardian.com/money/2016/jun/25/foxtons-fees-80m-lawsuit-tenants-legal-fight

Link to comment
Share on other sites

1 hour ago, MrXxx said:

I've really not sat down and thought the figures through like this before and its blinding, especially where a landlord is trying to squeeze you for the last few cents...show him this and then say "Are you sure you NEED that last few pounds to make your `business` worthwhile?"

My argument on ToS is that IO BTL is a massive under pricing of loans.

An io btl is nothing more than a commercial bridging loan. Idiot bank should have never been allowed to sell these at all. Bridging loans are supplued by specialist, unregulated finance cos who raise the money by bonds.

Having idiot regulated boe backstopped banks like nationwide etc is insane.

Commercial bridging loans are 2% a month compounding.

Link to comment
Share on other sites

I was previously renting in the home counties.

I threw in the towel and got out about a year ago.

Rents increased about 100-150 per month from 2012 to 2015, and then inched up slowly, which I suppose is a fall in inflationary terms, however, they seemed to be inching up ahead of wage increases (the local LHA rate was also stagnant, which kept the floor under the rental market).

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...