Average rent what is going on!

[Rosemariex]

2 bed terraces £950 to over £1000 pm! These aren't even in great areas and are nothing special at all inside nowhere to park car etc

how are people affording this? We have seen a lovely house in the perfect area but it is £1200 pm

this is Manchester where im looking is it as expensive as this in other areas?? (besides London)

or is this just the norm now and i need to realise im going to have to pay at least £1000

BTL was a disaster from the start

So poor you having to pay tax

£1650
3 bed semi end of terrace. Tiny garden. Average area nothing special.

It's killing us. Trying to save for a mortgage but we're spending too much on someone else's.

It will only get worse when the Energy certificate for insulation changes come into effect. They're needed to improve insulation and reduce heating bills for tenants but a lot of landlords will then have increased costs to improve the energy rating. So they'll sell. Whilst that may work for those who can buy, it will reduce the number of rental properties available for those who cannot buy.

We need rental reforms to improve rentals but with tax changes, massive mortgage hikes, increased costs for property repairs and the proposed insulation changes...a lot of landlords will have to sell.

Exactly the same here, if I had to rent my house I couldn't afford to. The last house that came up for rent in my street was double my mortgage too. I've just done a quick check for my postcode, no 3 beds under £1500. Going up to over £4000 for a 4 bed semi. Just so expensive (I am south east, not London).

I'm in London, paying £1200pm for a room in a shared flat. I could only dream of a 2 bed for that. I know that doesn't make it ok though, the whole housing market is insane.

So it looks like its everywhere then not just close to city centres.

its pretty terrifying but im going to either have to pay £950-£1000 for a terrace in a crap area or £1200 for a nicer house in a nicer area! either way there both extortionate and i cant see these prices ever going down its only going to get worse!

It's enough to make you want to give up, to be honest. Single people will just end up in house share's because the LL will favour a couple every time.

Our neighbours property is let out at £1500 pcm. It's a bog standard 1930s three bedroom semi detached house between Bristol and Bath.
They've just got planning permission to convert it into a 6 unit house of multiple occupancy.

Delightful. I dont mid having to pay tax, I'm happy to, but that doesn't stop the fact that an increased tax bill, combined with myriad other cost increases, means it's no longer tenable to let out unless I raise rent.

You won't believe me but this makes me unhappy, because my H and I are not in this to profiteer.

I clean a few hmo properties. £650 a month for A ROOM where you have to share the kitchen and bathroom with 8 other people. This is in a rundown part of Devon, ffs.

It is everywhere.

Even in my small and not-very-exciting Lincolnshire village basic two-bed houses (e.g. terraced) are about £750-900. And this is a pretty cheap part of the country.

I'd love to pay that for a house - I'm in Epsom in a maisonette no garden £1575 a month

Houses down here start at around £950 down our street. Luckily for us we rent from a family member zero mortgage so they let it to us at the price of our old house. £950 plus is just a huge amount of anyone’s wages. Mortgage or rent tbh.

It can’t keep going up while wages don’t, benefits can’t afford to keep paying such high rents either. This whole protect the big landlords and protect house price wealth for the very very richest will and is coming back to bite on arse. When people cannot afford rent or mortgages something will have to change no argument because you can’t have say half the population technically homeless while half the houses are empty.

The area on the south coast that I am from I have seen bog standard 3 bed semi with 2 doubles and a box room, tiny garden, no parking marketed at 1300-1500. It's ludicrous, I don't know how families are affording it.

But landlords get a free house at the end paid for by renters! Or am I missing something. Im going to be a landlord soon and I'm dreading it to be honest.

Agreed. If people didn't expect their tenants to cover their entire mortgage, it would help hugely to level the playing field.

TBH my ideal scenario right now would be for my tenant, who has a secure job albeit not high pay, to be given an opportunity to buy. I'd sell to him happily and at a below market price. But he can't save enough for a deposit and if he did mortgage rules are so tight he's need a massive amount for them to consider lending on his income.

I agree. Prices need to settle and fall, and mortgages need to be obtainable, and income needs to rise to match the increased costs.

God knows how though!!

Not the most popular opinion, but I think a good starting ppint would be limiting the number of Buy To Let properties people are allowed to buy/ own.

I have a friend who owns 8 properties in the city where I live and genuinely thinks he's doing the city a great service by being a good and fair landlord, and letting houses out below market value. But the truth it, he's getting his multiple mortgages paid off for him so that he will be super wealthy in the future (and he's already quite wealthy and in a high paying job).

I understand why he is doing it - because he can - so why wouldn't he do something that is in his and his family's financial best interest?

But the government should place limits on this, forcing more houses to be available for more people to buy. Prices would then fall.

It’s horrible for those who don’t really want to be landlords and those who rent full stop isn’t it. Many who rent cannot afford to save or won’t meet certain mortgage lending factors. It’s funny when you can’t say get s mortgage for £600 a month but can pay say £900 rent.

It’s going to hurt though either way. Either everyone’s going to end up on part housing benefits which means tax hikes too or prices drop which hits owners in the pockets. Such a lose lose.

Yes you are missing the fact that BTL mortgages are usually interest only so the landlord is not getting a house paid by tenants at all.

Mortgage interest used to be tax deductible but isn't anymore. It's the only business where that isn't the case, usually tax is only payable on profits. Then the huge capital gains tax if you sell. Don't get me wrong, my BTL does give me a small income but a huge chunk of the rent my tenants pay goes to HMRC and to cover other costs such as the £550 bill I've just paid for boiler repairs and the new washing machine I bought for my tenants when the previous one stopped working just after the years manufacturers guarantee ended.

Same here.

It "does give you a small income", though.

And it also gives you a property at the end.

You are benefitting. Your tenants are in a much more difficult position, if they do not own another property.

Sorry but I do not like it when BTL landlords talk about how difficult it is for them - the fact is you are benefitting and you are in a privileged position, otherwise you would not be doing it.

They don''t. Buy to let mortgages are interest only. You don't get a house bought for you at all.

I think most btl are interest only so unless at the end you have the lump sum to clear the actual capital you have to sell. It’s kinda renting a house from the bank to then rent out. It’s a bit crazy tbh but clearly makes the landlord some money.

Not "bought for you" but still gives you more than a leg up on the property ladder and you're a good several steps ahead of your tenants (assuming the rental is their only property).

The government should impose restrictions on BTL and limit the number of BTL properties people are allowed to own.