If you walk down many streets in London chances are any house would require a six figure income just to cover the mortgage.
Some people have to live there.
Housing market
- Thread starter matt j
- Start date
If you walk down many streets in London chances are any house would require a six figure income just to cover the mortgage.
Some people have to live there.
Gingerbeard
Ayup Me Duck
I don't think 'if' will come into it at all - I've got more chance of winning the lotto 3 times back to back than the Tories getting back in for another term...
Talking with a property friend the other day who had been chatting with a London-based agent - his business used to be 80% private landlord investor, it's now 30%, and falling. Fewer landlords, higher rents.
Ponty
pfm Member
That’s quite some fall. On the radio the other day a caller in London was saying their rent had increased from £1750 to £2750 pcm in less than 18 months, the landlord citing interest rate rises as the reason. Sounds like a LL with no resilience, but they paid it when they presumably could have moved. At some point, people just won’t be able to pay it.
Rents in London are still 'hot' - annual increases of 20%+ are not uncommon, but it is beginning to level off.
Ponty
pfm Member
Can’t see them falling though, so it’s baked in. Has filtered into outlying areas too but not to the same extent (IME). Seems to be no shortage of people willing and able to pay at present levels. The govt objective of hurting landlords is working, although seems to be hurting tenants equally.
The cynic in me wonders if the current set of grifters are in this so they can drive out the small investors and favour the large property investment compa nies with a view to future lucrative NEDs in said companies. Trebles all round!
Two opinions from property types (in London):
June 2023:
£0-£500k Sticky
£500-£1.2m Struggling
£1.2m-£2m Still busy
£2m-£5m Confused
£5m+ Business as usual
In new build:
£0 - £500k - lots of investors, less owner occupiers
£500-£1.2m - very tough, big discounts offered (BIG)
Decent activity £1,200 p sq ft and below
£2m-£5m - some interest
£5m+ - not our market
June 2023:
£0-£500k Sticky
£500-£1.2m Struggling
£1.2m-£2m Still busy
£2m-£5m Confused
£5m+ Business as usual
In new build:
£0 - £500k - lots of investors, less owner occupiers
£500-£1.2m - very tough, big discounts offered (BIG)
Decent activity £1,200 p sq ft and below
£2m-£5m - some interest
£5m+ - not our market
palindrome
Thru a hedge, backwards and forwards.
'£500-£1.2m - very tough, big discounts offered (BIG)'
Resistance is futile.
John
I've got a daughter at the top end of that. She just moved and ended up about £75k down on purchase and sale.
A friend of my daughter was paying £450 a month last year then in August it increased to £600. She has just been notified by the landlord that it is going up to £750, she will then be homeless as no way can that be afforded. When she complained to them as to affordability the landlords response allegedly was " get out then ".
palindrome
Thru a hedge, backwards and forwards.
Developers and private home sellers are only going to get what 'the market' will stand.
As we know, London is a bubble that distorts the broader picture, but as far as I can tell the overall trend remains downward. And if the BoE/Lenders keep punishing home owners, wannabe or established, by continuing to increase interest rates despite inflation remaining high, and negative equity begins to take hold, the 'dream' will be well and truly over for an awful lot of people.
Who then find that they can't afford to rent. . .
John
As we know, London is a bubble that distorts the broader picture, but as far as I can tell the overall trend remains downward. And if the BoE/Lenders keep punishing home owners, wannabe or established, by continuing to increase interest rates despite inflation remaining high, and negative equity begins to take hold, the 'dream' will be well and truly over for an awful lot of people.
Who then find that they can't afford to rent. . .
John
Apparently the landlord can increase the rent to a "market value" currently in place, this is what they seem to have done. Rental agreements going through, from what can be seen, is a 3 bed terraced in Bootle for £750(low) to £900(high), these are being achieved. She visited a help centre yesterday & was told that she needs an eviction order, or some sort of paperwork leading to that, from the landlord before they can step in !!
My daughter went from what was a rental of £585 a month 2 years ago to her own place now that is £234 a month fixed for 5 years. Get out of the rental market was the advice we gave her & she acted. Her old place was sold but is still a rental at £850 month
and yet private landlords are not making a living? I wish I could pay £234 a month and generate 850 revenu e.Apparently the landlord can increase the rent to a "market value" currently in place, this is what they seem to have done. Rental agreements going through, from what can be seen, is a 3 bed terraced in Bootle for £750(low) to £900(high), these are being achieved. She visited a help centre yesterday & was told that she needs an eviction order, or some sort of paperwork leading to that, from the landlord before they can step in !!
My daughter went from what was a rental of £585 a month 2 years ago to her own place now that is £234 a month fixed for 5 years. Get out of the rental market was the advice we gave her & she acted. Her old place was sold but is still a rental at £850 month
Ponty
pfm Member
I was talking about this with a (slightly older, and wiser) friend last night over a couple of pints. Said he doesn’t really remember a mortgage at less than 10% IR. The issue is that people thought free / overly cheap money would last forever, and judging by some of the prices, still do.
andyoz
pfm Member
That price range is probably the core most important segment now as COVID mirage would have pulled some properties into that now and it's how the cookie crumbles...
Don't think I've ever seen as impressive a bait and switch as I witnessed with the Stamp Duty frenzy.
...We really are a dumb race.