To think rents are going up because of insane levels of demand and not billionaires buying all the houses?

[BlueJuniper94]

Don't get me wrong, I don't like the billionaires, and I don't like them owning all the houses. But the main reason rents are rising like this is because we simply have too many people looking for housing than we have (or are building) houses for.

This.

The vast majority of landlords don’t have a mortgage and the majority own and rent out multiple properties. It’s a business. An investment. Passive income. All created out of people’s essential need for a home.

Housing contractors are interested in building residential property attractive to investors who are seeking a return. Not homes. The amount of so called affordable housing contractors are forced to include is pitifully low.

Housing can either be essential, suitable and affordable homes for people or it can be an investment vehicle for someone’s portfolio.
It’s difficult for it to be both.

Anyone who is counting on a change in immigration policy to result in lower rents, lower house prices or more suitable homes will be very disappointed.

Also worth considering that we have very little control over who can own homes and how they can be used, even in London. People can buy up property and treat it as an investment, they don’t have to live in their property or rent them out. In other countries there are restrictions, in India only Indian nationals can own property, in Singapore ownership and rental of property is very heavily restricted, certain property reserved for married couples, families etc.

It's also worth remembering that all these people need somewhere to live and increase demand.

I'm so sorry I don't want to move from our house now our children have gone. Yes, we have a lot of space and spare rooms but it's also the home they were were brought up in and we want that security for them to come back when they need to (I never had that security so maybe it's more important to me)
Also the house would sell for a lot of money (not bragging just stating a fact) and it's highly unlikely a 'normal' family would afford it.i would never sell to a landlord so we will be staying put until we absolutely have to go.

I’ve a couple of friends with BTL and by the time they pay fees ,taxes ,insurance ,LL registration and maintenance they’d make more investing there money with no grief
house prices stagnant so not making anything there
one will take years to be back in profit after taking forever to evict tenant owed 1000’s in rent 1000’s in damages and very hefty legal bill
being a Ll is no longer the golden goose

my mum won’t downsize as by the time she’s paid fees and stamp duty she’s well into nearly 30k cost cheaper to stay where she is and spend that money on running her existing house

Prices are basically a function of supply and demand. The main driver of increased demand over the past decade has been net migration.

How are we going to understand or solve anything if such a key fact is too dangerous to mention?

There's been a lot of building of student accomodation ie halls of residency by uni and by private equity firms.

TBH where DD1 is lovely - new build for students - finding somehwere post graduation will likely be a step down.

So I think housing being taken by students while still a thing probably on the decline as these private student halls have started to be built.

SIL works as a conveyancer and regularly handles bulk purchases of new build apartments by ltd companies. The apartments are bought but never rented out and held for a minimum of 12-24 months. The apartments generally appreciate in this time (maybe a 6-8% yield). Apparently a great way to launder money and the UK is known as a laundering hot spot.

Supply shortage causes house prices to rise, and means fewer people can afford to buy (particularly in the south) so have no option but to rent. This increases the demand for rental properties and at the same social and private housing is not being built. This creates huge demand in the rental sector and causes rents to rise, which then also attracts property investors and BTL landlords.

The rental and house buying market are intrinsically linked. If there was a significant rise in the number of rentals without the demand, rents would be falling. Investors wouldn't be investing if there wasn't demand, and it's the shortage that creates the demand.

The size of the private rental sector has increased from 10% in 2001 to around 20% in 2016 and has stabilised at around 19% since then.

This significant rise in BTL landlords has had a distorting effect on the housing market, reducing availability (to buy) and pushing up prices.

And tax payers are facing a huge bill when the renters eventually retire and claim housing benefits, when they would previously been able to buy their own home.

The only solution is to build more houses, in particular social housing with affordable rents. With more supply, investors will not be able to achieve desired rental income so prices will drop or they will sell freeing up more homes to buy.

I’m a millennial living in a 4 bed house with no plans to have children. I have a lot of friends in a similar position but go ahead and hate the boomers for wanting space 🙄

I am indeed aware that a huge proportion of legal migration is student visas. It's absolutely outrageous that the country has such high levels of immigration in order to prop up universities. Let them fail I say.

Immigration

Right to buy

Unintended consequences of improving tenancy rights and new legislation to improve housing.

My friend owns her Mothers house a 2 bed cottage. After her Mother died she let it out for 7 years. The tenant gave notice as buying. In that period new legislation had been introduced for upgrading and also new rights for tenants. She just uses it for holidays now and let’s to friends only for holidays. Legislation was to tackle slum landlords and protect tenants.

I despair of policy in Government, they have ideas that are sometimes great but appear to then run with them and not scenario plan.

Many towns and cities are full of student accommodation.
There is more demand for non-student accommodation for many many reasons.

Think of the number of single child children's homes being created.

More demand = higher prices.
More anti-landlord policies = fewer smaller landlords which ultimately is going to mean either fewer houses to rent or more corporate landlords.

So you would rather a tenant moved into a less than standard property while still charging rent?

and obligations to meet EPC ratings

but the EPC ratings have been delayed and as yet pushed back to 2030 and the EPC ratings themselves are being changed and no-one knows what they are

meanwhile

new build blocks and housing are being purchased off plan by large companies to rent out - which will meet EPC ratings and be far more expensive

even social housing companies charge more for identical companies being rented by councils - think £560 for council - same property, same builder, same estate - £800 with the likes of Orbit

Downsizing is only an issue as no suitable properties are being built. I would love to move into a smaller 2 bedroom (detached with small garden) and within walking distance of a town or on a regular bus route, but these properties are simply not being built (apart from those awful expensive rip off retirement new build homes).

No, they were pushed from '25 to '28 so all new tenancies meet the EPC threshold of c and above. 2030 brings existing tenancies in line. Iirc.

Yep, absolutely. My parents (born in 50's) live in a 5 bedroom house they bought in 80's. It's worth over a million now, not exactly a first times buyers home.

why would you want thousands of people to lose their jobs?

Universities are generally considered economic drivers for encomies - we punch above our weight in research and tech - and univeristies are huge employers in area they are in - and foreign students not only subside UK students course they bring money into the UK economy.

Higher education "exports" mostly going to be foreign students brought in £21.7 billion in 2021. While it's doesn't sound like a huge amount it roughly the black hole amount in government spending that had everyone worried while back and lead to higher bussiness taxes and more borrowing.

I think over time the HE educations ector will start to shrink - but there will be coqunces to that and I suspect it affect on housing costs will be negligible.

Yes. Lots of demand - more and more people needing to find somewhere to rent.

And supply is falling back because BTL property is no longer a very attractive option for many people who are looking to invest some of their money. There are ever more and more expensive hoops to jump through and tax advantages have been stripped away. So I’m in the process of selling my one BTL property - I’ll just stick the money in stocks and shares instead. Far less hassle.

It’s disastrous for renters.

Tell me you don’t understand the housing crisis without telling me.

Everyone focuses on immigration, but I’d have thought pressure also comes from people living longer, and higher rates of divorce or people never cohabiting in the first place, which will create more households. As a landlord stuck with a property I can’t currently sell (caught in the £250 ground rent AST trap), I do emit a hollow laugh every time landlords making megabucks is mentioned. I make a loss on the rental income from it, when you factor in mortgage / service charge etc, and I then pay about 60% marginal tax rate on that income. And I can’t sell it until the legislation heaves its way over the line. A cash cow it ain’t.

It's a big mess with many ingrediants- all started by Thatcher 's 'Right to buy.'

Because the requirement for "childcare" as opposed to children being cared for by families has been created by housing costs... ...