4 ms·

I don't agree. I'm London, UK and rents ante rising at an insane pace.

by nly 3y ago

FanaHOVA 3y ago
All of these articles only matter if you want to live in places that people don't want to live in. That's why rents are so cheap. If you're in London, SF, New York, etc, it doesn't really matter. Also some of these cities have low averages (like New York given the size of the boroughs) but don't reflect the reality of where people want to live.
DrBazza 3y ago
Rather unhelpfully, this Government decided to tax landlords on income not profit. Previously landlords could rent at £1000 pcm, pay their buy-to-let mortgage at £900, and get taxed on the profit of £100, at 40%, that would be £40. Now they get taxed on £1000 = £400, and get a tiny amount of tax relief on the mortgage cost. So many landlords were paying much, much, more tax. So quite a lot of them exited the market. Fewer properties, same number of people chasing places, has increased rents. On top of a stupidly hot property market in London, and it's the perfect storm really. Slow applause for the UK government on this one. They were told this would happen when they made the change several years ago.
agent008t 3y ago
Could you give some numbers on this please? Really curious. I am seeing rental yields still under 3.5% (zones 1-2, Victorian terraces converted to 1-2 beds).
- dukeyukey 3y ago
  Mortgage interest costs have gone up, and rents have gone up alongside them. I live in a 1-bedroom flat in Zone 2; before Covid, we rented a 1-bed with garden for £1450; when we moved a year ago, cost went up to £1600. Now we're moving again, and it looks like prices have gone up to £1700-1800.
  - agent008t 3y ago
    Thank you - I doubt it has much to do with interest costs though. 1450 before Covid to 1750 now pretty much matches CPI exactly, so in real terms rents have remained the same. Not that it makes paying it any easier, of course - rents and house prices are still outrageously high.

I don't agree. I'm London, UK and rents ante rising at an insane pace.

by nly 3y ago

I don't agree. I'm London, UK and rents ante rising at an insane pace.

All of these articles only matter if you want to live in places that people don't want to live in. That's why rents are so cheap. If you're in London, SF, New York, etc, it doesn't really matter. Also some of these cities have low averages (like New York given the size of the boroughs) but don't reflect the reality of where people want to live.

DrBazza 3y ago

Rather unhelpfully, this Government decided to tax landlords on income not profit. Previously landlords could rent at £1000 pcm, pay their buy-to-let mortgage at £900, and get taxed on the profit of £100, at 40%, that would be £40. Now they get taxed on £1000 = £400, and get a tiny amount of tax relief on the mortgage cost. So many landlords were paying much, much, more tax. So quite a lot of them exited the market. Fewer properties, same number of people chasing places, has increased rents. On top of a stupidly hot property market in London, and it's the perfect storm really. Slow applause for the UK government on this one. They were told this would happen when they made the change several years ago.

agent008t 3y ago

Could you give some numbers on this please? Really curious. I am seeing rental yields still under 3.5% (zones 1-2, Victorian terraces converted to 1-2 beds).

dukeyukey 3y ago
Mortgage interest costs have gone up, and rents have gone up alongside them. I live in a 1-bedroom flat in Zone 2; before Covid, we rented a 1-bed with garden for £1450; when we moved a year ago, cost went up to £1600. Now we're moving again, and it looks like prices have gone up to £1700-1800.
- agent008t 3y ago
  Thank you - I doubt it has much to do with interest costs though. 1450 before Covid to 1750 now pretty much matches CPI exactly, so in real terms rents have remained the same. Not that it makes paying it any easier, of course - rents and house prices are still outrageously high.