To think that renters have put up with big monthly rises for years

[Upthebracket22]

We rent because we have been priced out of the housing market for years & years. We have raised our kids in a rented house & put up with large rises in monthly payments. We’ve been ‘lucky’ in that we’ve been on our current house for 10 years.

Noone has given a flying fuck about renters & the amount we pay & have had to find extra each year but now it’s mortgages going up, it’s all ‘poor mortgage holders’ - it’s really grating on me.

As it goes, the coming housing downturn will mean we actually might be able to buy a house. Safe secure affordable housing is a good thing.

the current housing boom has been created by cheap money and that era is ending. An entire generation of people have been priced out of a safe home & while I don’t want to people in difficulty, renters have had to put up with it for years ‘move to a cheaper area’ being the main nonsense.

We are a normal family with good jobs but saving for a deposit has been impossible because of insanely high rents.

i am tired of the ‘poor mortgage holder’ rhetoric when those of us trapped in rented homes have put up with large monthly hikes for years.

i know this won’t be a popular view on here but for us renters, the last decade had been difficult and no one has given a shit.

There seems to be an assumption that corporate/social housing landlords don't have to use debt to fund expansion. They do.

You're paying off debt either way. As land is a finite resource and we dont exactly seem to be trying to limit the population growth, the cost of building land is only going to keep increasing. Do newer tenants pay the higher costs or is it spread across the board, leading to higher rents.

In any event, until we sort the population growth issue out, all the measures you can come up with are on a hiding to nothing.

Out of interest, if you end up with more or less monopolistic landlords, what happens to people who are evicted? People after relationship breakdowns and so on. The private sector provides this.

This thread isn’t so much about landlords taking advantage- although there are plenty that do.

it’s about the ‘poor homeowners’ rhetoric after years of low rates and often tiny monthly mortgage payments who are not having to pay more and it’s all about how awful that is.

it’s been awful for renters for years and no one has cared! That’s what I am saying.

Why is it ridiculous, though?

If there are two of you and you need a minimum of a £100,000 deposit then you must be living somewhere house prices start at around £600,000. I agree with you that renters get short shrift, I agree that more should be done for them. I don’t agree that couples earning a good wage have no hope of buying. However, as with most things, some compromise is needed.

YANBU at all. Rents in my area have gone up from £800 pcm for a 2 bed terrace to £1500-2000. Meanwhile my mortgage for the same thing has remained at £600 pcm. It’s disgustingly unfair and I agree there hasn’t been anything like enough coverage of it.

I rented for years.

I have a mortgage now which is likely to rise by £600+ per month

never saw that kind of rise when I was renting so I think you're being a bit narrow minded personally

Your rents can't go up monthly. The law states Ll can only raise rent once in 12 months. I am a LL and only raise prices once a year by inflation. Some tenants I have not raised rent because mortgage to house they are in is on a fixed deal. Others are on a tracker and so this year I shall be raising rent because so far my mortgage has risen 5 times. I am expecting to raise rent so I absorb 50 percent of increases but rent increase makes up the rest. After April I will be selling 1 house and another the following April and the April after my that. Almost all LL I know are selling one property each year. It will make it harder to rent.

move to a cheaper area eh? As per my OP. It’s always the same ridiculous point!
YOU chose to have children before getting in the ladder. YOUR choice.

Others opted to start by saving £10k when they had more disposable income, buy a small flat, then a small house and only started their family when they could move then to a bigger one. Some chose to only have one chil because they could only afford a two bedroom. Own your choices.

@Emeraldgreenjewel but it wasn’t that expensive when we moved here. There’s been an insane housing boom with 30% rises in the last few years alone. We have jobs and a life here & kids in school- we can’t just leave. We are always one step behind when saving- that’s what no one seems to get. We can’t compete with the constant rises

I don't know. This really depends on the type of job that you do. For some people moving to a cheaper area is a good option. It's not helpful to want a house in the same street that you grew up in just because you feel entitled (something I read on here last year or the year before), 1. The previous generation could afford it more easily. 2. That house mostly wasn't the first home that they bought. My brother moved to a cheaper area and has a lovely home now. He has a job that he can easily do somewhere else.

Although the avocado thing is bullshit and the prices rise too quickly, it does irk a bit to have a cousin complaining that he can't save for a deposit after he just came back from his 3rd international holiday while we as home owners haven't been able to afford one in 3 years. So that does sound a bit.... delusional.

@Emeraldgreenjewel i think you’re forgetting about life as well though. Yes we all have choices and yes I agree that sometimes people make poor one but equally sometimes life throws people a very poor hand. It’s not as straightforward as you should just be able to save and if not move. Where I live the house prices 12 years ago were reasonable, now because so many people have moved out of London it’s had a hug knock on effect and we live 45 mins out of London. People have moved here because it was cheaper. Not now. Rents have more than doubled and the house prices are ridiculous. What people have saved has very quickly become a pittance because people are moving elsewhere to find cheaper properties.

Completely agree. For years it's been much more expensive to pay rent than repay a mortgage. I own a house that I could not afford to rent. I bet a lot of people are in the same boat.

Before we bought our house, every year our rent increased, yet nothing was every done to maintain the property.

I see so many posts on here of people claiming to be ‘good landlords’, but in all our years renting, we never came across one that wasn’t greedy or that maintained the house adequately (falling apart kitchen units, dodgy electrics, shabby carpets etc).

YANBU

Our population continues to grow due to various factors. Look at the ONS to see the actual growth and expected growth.
in many places the population is growing faster than the housing delivery.

We are a small island, land can't be reproduced and more and more properties are being squashed on to try and create more housing.

The truth is that humans need properties to live in. Whilst I think the buying markets may steady for a while, I can't see it dropping.
More landlords are selling up but that will likely push up demand for the fewer rentals rather than provide first time buyer opportunities.
Lenders are nervous.

Its a shit show.

We rented for 15 years and the constant increases were absolutely shit. We now own (we did actually move to a far cheaper area to be able to buy) and the monthly mortgage increases are still shit. It’s not one or the other, it can be awful for more than one group of people.
The reason it gets more traction in the press when it involves mortgages is that increased mortgage rates are a symptom of the financial landscape as a whole. And, of course, when mortgages go up then rents inevitably go up too.

Our landlords mortgage is interest only and £150 a month. Our rent is £1250. In 10 years he’s bought a new oven and that’s it. Our rent rises every year. Yes it’s been stable but it’s only nice as we have painted it.

I voted YABU. Not because I disagree that renters are shafted, but because I disagree that it hasn’t been very high profile. It’s discussed loads!

@SeasonFinale

Lloyds bank are buying up 50,000 houses in a bid to become a massive corporate landlord

@Moraxella and that should be stopped!

They are though.

I’m not saying it’s easy but I’m 30 and the balance has definitely tipped in the last year or so that most of my peers own homes. We are all normal people with normal jobs:
-local authority employee
-accountant
-policeman
-civil servant
-engineer
-project manager
-teacher
-chef

Someone who works in sainsburys probably can’t afford to buy a house in our area but this has always been the case. The poster who made a point about having children later on was shot down but made a good point. It is obviously going to be more difficult if you have 3 kids before home ownership because you then need to find somewhere that is not entry level to the market.

Life does throw people a poor hand sometimes. I’m just not sure that two professional people in well paid jobs fall into that particular category!

How you are supposed to save for a deposit is impossible. It's not fair for you m. Only those who make silly money or are luckiy enough to have inheritance or wealthy family can realistically get a deposit together in under 20 years. I feel for you. It's not fair on you and other renters. This is something this generation have been lumped with. Before if you worked it was possible to save for a deposit but now it is not.

My son moved from Midlands were he could not afford to buy a house to Hull where he has bough a lovely 2 bed terrace. He took a big salary cut when he moved too. He likes his new life, got a new job before he moved, bought his house, made new friends, got a lovely gf, he is glad he had courage to make move when he did. Some of his friends still living in Midlands, still can't afford to buy, still complaining and now saying how lucky my son was. It was not luck it was planned and he was determined to make it work.

This is true but a good chunk of landlords will be locked into fix term deals (as a LL you would be an idiot to do a tracker)

yet rent goes up as the interest rates rise, even if it’s not hit the landlord, it’s almost as if they are maximising profit because they can.

Also will the rent go down if interest rates fall??

I also know a few people who are landlords and they have paid off the property (we’ll never let it fully be completed and then occasionally remortgage as a cheap loan)

however they could clear it it any point without issue so the interest rates don’t really impact them but they still hike up the rent because of it.

people complain about petrol prices and it going up like a rocket and down like a feather, well in the rental market it goes up like a rocket and never comes down

Non of those will be on average wages though. Plus it’s not just based on one wage but household income.

if anyone has kids makes it harder and childcare is an killer in cost or accessibility. Either you pay through the teeth or you give up work, both destroy affordability checks. And the answer of not having kids is not a real answer, the biological clock doesn’t wait for you to have secured a house. You wait for perfect time you most likely miss out.

How do you know what his mortgage is?

I can bet you've never had a rent payment go from £1200 a month in September to £2000 a month in October, to £2300 a month in November etc etc..

That is what a lot of homeowners are facing. No one disagrees with you that rent prices are extortionate, but you seem to be missing the economics of it.

If repossessions happen at the level they did in the 80s, all the rich landlords will buy the houses cheap and STILL charge high rents as they'll have a higher interest rate mortgage even on a cheap house.

If the mortgage market becomes unstable so does the rental market. If LL can't afford their mortgage (and there are many accidental LL to who this will apply) you know what happens, they sell the house. They walk away with any profit they made and the tenants are homeless.

Again, no one is saying the rents arent high but you do seem to have a rather simplistic view of the mortgage market. You seem almost giddy with joy at what is happening to homeowners without considering the knock on effect to tenants.