To wonder how people afford to private rent and think there should be a cap on it

[user1498221998]

From the age of 21 I have rented from Housing Association. When I finished my University studies I was unemployed and didn't want to return to my Parents or house share so I applied for social housing. Got given a HA apartment and when I had my Son at 23 I got given a council house.

I've never had the money to buy or private rent so never got to live somewhere I actually wanted and always felt upset and angry at the fact I lived somewhere I didn't like and couldn't move.

I'm in the process of moving to a smaller house but in an area I prefer. I am moving from a two bed semi detached house to a two up two down terraced house but I will be happier there. When viewing I got speaking to the neighbour who informed me she pays £750 a month to rent her house privately!!!! I was absolutely stunned. This is a fairl;y grotty, tiny two bed terraced house in a rough part of Manchester (Central though which pushes the price up).

Intrigued I went on rightmove and found the house I currently rent for £380 a month is on a street where the houses are £700 a month to rent!!!

I am stunned! I've never private rented so never knew the cost. I will appreciate my HA property so much more now.

Both houses are worth about £120k. That's a lot of rent for 120k house. I can understand high rents in desirable areas but these are not. I earn 29k and couldn't afford to rent privately. How do people afford it?

AIBU to think there should be some cap on how much private landlords can charge?

Im going to get flamed for this but I think a lot of people expect a lifestyle that unrealistic while they're still very young.

I earned a similar amount to the op and managed to save for a deposit on my first home while renting. I shared my house to save money and made savings in all other areas of my life. I didn't have a holiday for a couple of years (and it didn't kill me).

A lot of people have no idea how to save money but complain that they can't make ends meet.

Of course this isn't the case for everyone but I've seen plenty of examples.

what we need is a drop in property prices so that people can afford to get on the housing ladder without taking on an unsustainable amount of debt

as it is landlords have been allowed to purloin housing stock and use it to siphon money out of the pockets of people who work for a living.
Instead of investing in your own future security you have to work to fund your landlords pension

My dp earns a similar wage and we rent privately. How ever, we are renting off of family so our rent is cheaper than others in the area. Rents in the area are often £100-200 more for a similar property and it's not an especially affluent area.

I do worry that if we ever need to leave we may not be able to afford another rental in the area as they are increasing rapidly it seems. Which would be a shame as we like it here. I do consider £29k to be a very good wage, but that doesn't justify an extortionate rental market.

what we need is a drop in property prices

too bad for people who will be thrown in negative equity, too bad if they ever need to downsize or just relocate?

My annual income is £16k. My rent is £700 a month. I cant afford private renting, it's on the verge of bankrupting me. But I also stand no chance of the council helping me while I have a roof over my head. And where I live rents are stupidly high anyway.

We're just under £1k a month. Between that and nursery fees, we'll never be able to save enough for a mortgage deposit. It's shameful and upsetting.

Careful there, rent controls are holy writ on mn. The idea that they haven't worked will not go down well.

In parts of the country not paved with gold, we do have rent controls from market forces. The problem in the bottom right corner is supply and demand, compounded by lack of enforcement on both sides.

I would like all the current tenant protections to remain for normal people, but for a functioning fast track eviction process to exist for non payers/ trashers/ dealers. An efficient regulation process would also ensure that a landlord renting out a mouldy property fixes it if is a building issue, but if it is a wet washing / no heating / no ventilation issue, the tenant sorts it.

Then perhaps everyone would benefit.

Landlords shouldn't be buying houses that market rent can't cover. This is why rents are going up. LL don't care how much the property costs; they can just whack a couple of hundred on the rent, let the tenant, or HB (aka the taxpayer) pay it.

specialsubject Of course capping rents would be a disaster - it as tried and it all but destroyed the supply. But saying so around here is pissing into the wind. Excuse the male metaphor!

If you have to pay it, you will. We were paying up to £1600 a month in London before we bought.

I also dont understand if you earn 29k which is well above the national average wage how you cannot afford to rent privately or buy !

OK so under current status banks want bigger deposits and house prices have increased consierably over the years

However there are places in UK where houses are affordable

I have rented and owned

Rent provides more flexibility to move location easier

Buying provides more stability, but there are maintenance costs
However sacrifices have to be made to save up for deposits
You can make the property into your home

Have you investigated how much it actually costs to buy property with deposits, mortgage, surveys, solicitors fees, other fees, renovations, insurance ?

I believe that rents are generally set at a fair price

850pcm for a two bed flat here. Have two incomes though, and still not much left after bills, fuel etc.

YANBU though. Private rents are ridiculous and it's shameful that so many people are in a position where they are just working to keep a roof over their head, just.

I earn just under 15k. My rent is £875 a month for a 2 bed house. Child tax credits (for 2 children) bring my income to about 23k a year.

I applied for housing benefit but apparently I earn too much.

Most 2 bed properties in my town are £950 plus, so I suppose that makes me one of the lucky ones.

There is a massive problem with homelessness in this town. I think it's obvious why.

We all know there are no simple solution but the lack of secure affordable housing, be that owner occupied or rented has a damaging effect on society as a whole
in order to thrive and make a positive contribution to society you need a secure home
A situation where the best place to park your money is property has led to an inefficient use of resources and waste of human potential

That's definitely much of it. But while Carney continues to kick savers andn cannot see why btl keeps growing, no hope.

In London studio flats go for over 1k a month.

From the age of 21 I have rented from Housing Association. When I finished my University studies I was unemployed and didn't want to return to my Parents or house share so I applied for social housing. Got given a HA apartment and when I had my Son at 23 I got given a council house.

I think this is part of why we have a housing crisis in this country (note: part of the problem. all sorts of other issues as well). people expect the state to house them. I grew up in another country and if you can't afford your own place after uni, tough. back to mum and dad. many people I went to uni had to do this.

if you think about this, this will put a strain on housing from the previous generation. Now, people live for much longer alone without a family and are getting jobs much later. We either need to reduce our expectations or have the state or private market buildway more houses.

A situation where the best place to park your money is property has led to an inefficient use of resources and waste of human potential

this to me is the heart of the problem. locals are competing with global millionaires for local houses because that's currently the best thing to do with your money. Notice that in 2007 interest rates were well above current rental yields, so people would choose risk free bank accounts over housing as an investment (but they didn't because yields were also quite high.

I grew up in another country and if you can't afford your own place after uni, tough. back to mum and dad. many people I went to uni had to do this

What about those of us who don't have a mum and dad to go back to, or indeed didn't go to uni?

I'm honestly aghast that you earn 29k and are in a HA home.

We as a couple earn less than you and pay £900 a month rent for a small semi detached 3 bed in Hampshire. It's not exactly affordable but we manage.

Right to Buy was a huge mistake that took too many properties out of council stock that were never replaced

People who were legitimately entitled to a council property stay in it for life even if their circumstances change and they would no longer be eligible.

Both these things are not the fault of the individuals who benefit from them (even though imo both are immoral). Both are the result of successive governments from both sides overseeing the depletion of council stock of property until any new people have to be living on the streets and then will only get given a room in a B&B anyway (this policy also hurts landlords who are forced to go through the full eviction process and therefore tenants who have to pay more to offset this risk).

I'm I earned about 14/15k and rented for 400 a month. I'm astounded you can't afford a bit more on your salary even with a child.

You are university educated and yet you didn't know what private rental costs were like?!!!!
How on earth can you not know?
What bubble have you been in?

Nonsense to say you couldn't afford £750 rent on a £29K salary. You might not like to, but you could - just as very many people do.

I earn £27k and rent privately for £600 per month. It isn't easy, but I'm not exactly struggling either (no iPhone or holidays, but I do have a decent car for example). I don't have kids though, and don't intend for the foreseeable future.

I'm not sure a cap would help. Far better to have more social housing available and let market forces do the rest.