To think rent is so bloody unfair

[Tar19891]

My rent is 800 per month. A mortgage on the same value flat would be 450 per month. Not in London obviously. It’s not fair is it?

@Tar19891

Plus the landlord is building equity. Come on, we’re all adults as you say. Just admit to profiting off the situation

Is that the whole reason they become a landlord though?

@LardyDee - well done for doing an economics A Level and talking about the invisible hand as if we have a free market. Total and utter bollocks though if you actually analyze how the last 30 years of capitalism and monetary policy have worked.

Can’t believe some of these responses tbh

Goady tbh

It’s obvious what op means , plenty are stuck in a cycle of renting unable to save the required deposit therefore not get a mortgage despite the fact rent is often more than a mortgage

The house next to me is rented i saw the ad on right I’ve when it went up 5/6 years back and even then it was 300 a month more than my mortgage . Not to mention these houses are now going for 25-30k more than back then due to inflation

So no it is not fair

[quote SwanBuster]@LardyDee - well done for doing an economics A Level and talking about the invisible hand as if we have a free market. Total and utter bollocks though if you actually analyze how the last 30 years of capitalism and monetary policy have worked.[/quote]
You greatly overestimate my qualifications in this matter!

But that's the market setting the rent and ensuring that a limited resource is used most efficienty! Invisible hand. It does the same thing for house prices. And it works the other way round in areas where supply exceeds demand.

And the invisible hand is what kills homeless people and has children living in mouldy (soon to be unheated) shitholes. It's like Dickens. “Many can't go there; and many would rather die.” “If they would rather die,” said Scrooge, “they had better do it, and decrease the surplus population.”

Some essential services should not be governed by laissez faire economics. Particularly when the completely laissez faire part is manipulated by the rich. So it's only laissez faire seemingly.

@Changemaname1

Can’t believe some of these responses tbh

Goady tbh

It’s obvious what op means , plenty are stuck in a cycle of renting unable to save the required deposit therefore not get a mortgage despite the fact rent is often more than a mortgage

The house next to me is rented i saw the ad on right I’ve when it went up 5/6 years back and even then it was 300 a month more than my mortgage . Not to mention these houses are now going for 25-30k more than back then due to inflation

So no it is not fair

The problem is a massive housing shortage due to our planning system.

I own a flat that was purchased for £106k in 2005, it’s now only worth £80k because of a saturation in the market although rents have stayed around the same £450-475.

@babywalker56

My rent is £1200 for a one bedroom😂 it’s a joke but what can you do ey

That’s ridiculous....I don’t know how people afford it....my DD is just about to move into her own home...but has been paying £320 a month for a lovely little 2 bed housing association property .... she appreciates how lucky she is to have been able to save for a mortgage

@mumwon

I would love to know where your flat is £120 thousand & get £800 per month rent

That is what is happening right now in the NE/NW

SE/SW/London is saturated. You simply cannot squeeze more yield down here, so the property speculators have turned to Wales/NW/NE

Been seing yields in the 8-10% range, which looks to be about right (£800 at 120k).

@Comedycook

If you think it's so unfair, buy instead

“Don’t be poor, be rich.”

It's crap having to rent and anyone who says it isn't doesn't rent.
Yes with a mortgage you do have insurance and repairs but you get a place of your own. Rent is dead money (for the tenant).
IME landlords are greedy and happy to buy up properties, charge ridiculous rent and price their tenants out of the market.
We could afford a mortgage but not while we're paying a, stupid amount of rent every month.

@Changemaname1

Can’t believe some of these responses tbh

Goady tbh

It’s obvious what op means , plenty are stuck in a cycle of renting unable to save the required deposit therefore not get a mortgage despite the fact rent is often more than a mortgage

The house next to me is rented i saw the ad on right I’ve when it went up 5/6 years back and even then it was 300 a month more than my mortgage . Not to mention these houses are now going for 25-30k more than back then due to inflation

So no it is not fair

Completely agree

Why isn't the Fire Service run as a busines? Because some things benefit ALL OF US so much, we run them like Communism . If my neighbour can't afford to have a fire put out, I'll pay because otherwise it puts my house at risk.

Housing people poorly affect every measure of health and success for a country. I'd rather pay for that because it's worth it.

Renting can be very unfair though, particularly if you do want to buy. Banks will look at you paying £800 a month in rent and turn you down for a £450 mortgage as they don't think you can afford it, they'll then ask you to prove you can afford it by saving up £10,000 except you can't afford to do that because you're paying £800 a month rent...

There needs to be more support for people moving from renting to buying, including making banks take renting history into account - someone who has paid £800 every month for several years without fail is not going to be at high risk of being unable to afford £450 a month mortgage.

Alongside this there should be greater protections for renters and tighter regulation of landlords and letting agents. Yeah, there are decent landlords and letting agents out there but there are also a lot of cowboys. Rent controls, standardised tenancy agreements, service agreements set by law (e.g., timescales for repairs, minimum accommodation standards, etc), and an independent complaints commission with the ability to actually penalise rogue landlords/agents would all go a long way towards improving the industry.

@MrsTerryPratchett

But that's the market setting the rent and ensuring that a limited resource is used most efficienty! Invisible hand. It does the same thing for house prices. And it works the other way round in areas where supply exceeds demand.

And the invisible hand is what kills homeless people and has children living in mouldy (soon to be unheated) shitholes. It's like Dickens. “Many can't go there; and many would rather die.” “If they would rather die,” said Scrooge, “they had better do it, and decrease the surplus population.”

Some essential services should not be governed by laissez faire economics. Particularly when the completely laissez faire part is manipulated by the rich. So it's only laissez faire seemingly.

I do agree partly. The problem is that the market cannot respond efficiently to excess demand by increasing supply. We can't build enough houses due (mainly) to the planning system. So instead to accommodate everyone supply and demand are aligned by the price per square foot goes up and people end up living in cramped unsuitable conditions.

We need to build more houses. And stop blaming landlords!

so get on the property ladder then.

paying rent yet not owning anything to show for it is the major reason people buy.
lots of good ideas on how to save 5K a year.

@Jobseeker19

I have yet to meet a landlord who pays insurance.

How would you know? I

Yes - no matter how much your rent is, massively high or low depending on where you live, it takes a disproprtionate amount of income; which eventually is very unfair.

I'm fortunate to have inherited enough to buy a terraced house in the cheapest area where I live with a mortgage in my 50s.

I rather think that the current housing situation is more than unfair, it's quite hideous, with renters paying huge chunks of their income just to keep a roof over their heads.

As for any LLs claiming it's not so rosy their end, oh dear and boohoo, I have no sympathy for you.

I'm not even a renter or a landlord but I know from growing up where everyone rented that most landlords will leave their property maintenance to the minimum they can get away with. New windows 🤣 New kitchens and bathrooms 🤣 Most begrudge changing the carpets between (long term) tenants. A new boiler? Only when the old one has died a death and the tenant has been left freezing for a few weeks will the landlord replace it.

And stamp duty/conveyancing fees/surveys are not ongoing fees that landlords pay as a monthly fee. Even after insurance/taxes etc, the profits they make over a year more than cover any extra bills. That and the equity they are gaining year after year.

Stop making it sound like landlords are poor victims just scraping by.. if it were that bad people wouldn't be buying to let and landlords would be selling their properties to get out of this awful situation they are in that are leaving them penniless. Peeerleease 🙄

The 5% thing seems to be back, in case it helps anyone

www.moneysupermarket.com/mortgages/first-time-buyers/95-mortgages/

Yes OP. It is unfair. And all this “no, it would actually cost 800 a month… remember insurance and repairs” is bs. I rented for over a decade. In all that time I could count on one hand the number of times a ll repaired anything. And when they did it was the cheapest fix humanly possible.

But mn is full of landlords that also want to think of themselves as social justice warriors and utterly fair in every way possible.

*Renting can be very unfair though, particularly if you do want to buy. Banks will look at you paying £800 a month in rent and turn you down for a £450 mortgage as they don't think you can afford it, they'll then ask you to prove you can afford it by saving up £10,000 except you can't afford to do that because you're paying £800 a month rent...

There needs to be more support for people moving from renting to buying, including making banks take renting history into account - someone who has paid £800 every month for several years without fail is not going to be at high risk of being unable to afford £450 a month mortgage.*

Literally this! It’s a never ending cycle

@Chestofdraws

You realise from that eight hundred the landlord pays tax, insurance and has to also pay all repairs? And if you had a 450 mortgage, you’d also need insurance, buildings, and you’d have to cover all repairs yourself right? Although granted you’d not pay tax. What is it you find unfair?

Well maybe the landlord should just not bother and let houses prices return to a sensible level for first time buyers. Rather than all the affordable houses being snapped up for property portfolios.

Our let flat mortgage is £550. Rent is £900. We make a loss.

Repairs, tax, insurance and service charge are about £500 per month.

Oh, and the flat's worth significantly less than ten years ago.

It's not always a wheeze being a landlord.

We need to build more houses. And stop blaming landlords!

TBF I blame the international system which has turned housing into a commodity. However, the House of Commons, IMF and all the other institutions have many more landlord bums on seats than renters. And considering how many more renters there are than landlords, that's a massive issue. Decisions are being made for the good of the few. The rich and priviledged few.