Brighton - Fastest rising rents in the UK...

[Drumstick]

They need to find an area build a mass collection of tower blocks. It had worked in other cities.

Obviously the infrastructure had to go with it but it can be done.

I disagree with caps. It's a supply and demand market.

 

[Gwylan]

Except our economy is propped up on the property industry (as well as unsecured consumer credit) and if you flooded the market with new homes and devalued houses the whole economy would be catastrophically ****ed. The government and housing industry have a vested interest in building up land banks and trickling out houses.

The trouble is: if rents keep rising above the rate of inflation (and the forecast is for house prices to go up 6%,higher in London - while rents are rising faster than house prices) then people will pay more of their salary on rent. If they pay more of their salary on rent, then they have less to spend on clothes, cars, meals, entertainment etc. When that happens, shops, pubs, restaurants, car dealers etc start going bust. So, the economy gets screwed another way.

It may look like that's a long way away but, according to that article, Brighton residents are already paying 65% of their salary on rent, if that goes much higher, there'll be less disposable income all round

 

[sir albion]

I pay 1200 a month for a very nice brand new 2 bed, off street parking in portslade, it's my choice to pay that much and don't have a problem with it.
What pi$$es me off is that I had to pay an £1800 deposit!
They now have best part of 2 grand of mine for the foreseeable future that I have no access to whatsoever.
There seems to be no alternative regarding the deposit system.

Yeah deposits are bloody hideous as my 1 bedroom flat needed an outlay of £2700 to move in,bloody nightmare especially if you want to move again and don't get the deposit til a few weeks after.

 

[Reagulls]

Yeah deposits are bloody hideous as my 1 bedroom flat needed an outlay of £2700 to move in,bloody nightmare especially if you want to move again and don't get the deposit til a few weeks after.

It is financially very painful, mine was 1800 deposit, 1200 rent, 165 each admin fee and 50 rent deposit fee!
£3380 just to move in

 

[Ernest]

Sort letting agents and their extortionate fees for a start

 

[Lincoln Imp]

Have you any stats to back that up? Also, you don't seem to make any reference to the increase in value of the property over the term of the investment.

Finally, I suspect there are many members of the public sector who would love to have some savings to invest in a couple of properties in Brighton.

No, as I implied it was only a guess that most landlords are small scale individuals with one or two properties but I could be wrong. You're right about increases in property values but they don't help pay any owner's bills (and for a landlord, capital gains are heavily taxed).

With respect, you miss the point about public sector workers. I wasn't having a go at them, or setting one group of people against another. It's a fact though, that on average, PS workers have much better pensions than other people. If I had spent all my working life (as against a fairly small proportion of it) working in the public sector I wouldn't have had to save every dime from my years of self-employment to buy a small flat to provide me with a cashflow that goes some way to match what I would have had if I had remained in the glorious service of the Royal Mail.

 

[Nibble]

At the risk of being flamed, I am going to own up to being a landlord. I also work in property (not an estate agent). I am amazed anyone is paying that for a studio flat. I have a studio flat in a listed square on the seafront recently refurbished = £700. Last year it was £600, so I don't deny rents are on the increase. But £1000 a month should easily get you a decent one bed flat.
Are these very large studios?

Ouch. Obvs you've got your own overheads/life costs but a studio flat should be £550 a month. No more. Not realistic in this climate but that's all they're worth. How do you justify the 100 increase in ONE year?

 

[Lincoln Imp]

I agree 100% with what you say but that still doesn't make rent NOT too high and making them often unaffordable to many, especially for people like key workers such as Nurses.

Your option D is a possibility. That would mean that if all those landlords with 2nd or 3rd property, if they all went on the market at the same time, there would be a ''glut'' of properties on the market which would slow the cost of rising house prices.

I am not against people having 2nd rented properties but to pretend it does not affect the less affluent would be incorrect. Thats Capitalism for you

The level of rents do affect the less affluent so I completely agree with you. As the owner of one small flat in central Brighton I am not really relaxed with the basic concept of taking money from someone in return for a roof over their head. I do it because I need to have that income but I try to square the circle by being the best landlord I possibly can be, and charging around 10 per cent under the market rate. We're not all Rachmans - I like to think that most of us are like HantsSeagull. (And it's worth mentioning that higher rents in certain areas don't necessarily mean that local landlords are greedy - in fact, the best returns on capital currently tend to be in cheaper parts of the country. Because he had to pay disproportionately more for the property the landlord in Brighton is making less than one in, say, Leeds.)

 

[LamieRobertson]

They need to find an area build a mass collection of tower blocks. It had worked in other cities.

Obviously the infrastructure had to go with it but it can be done.

I disagree with caps. It's a supply and demand market.

I'm not keen on caps.....but unless there is a huge swing in the supply side it's only going to get worse isen't it?

Market seems totally f****d in certain parts of the country

 

[HantsSeagull]

Ouch. Obvs you've got your own overheads/life costs but a studio flat should be £550 a month. No more. Not realistic in this climate but that's all they're worth. How do you justify the 100 increase in ONE year?

i am afraid its not you that decides what they are worth. demand and supply does that. market economics. you may not like it but thats the facts. i justify the increase by the fact i had a queue of people willing to pay it. pretty sure i could have got more if i had tried.

 

[Wrong-Direction]

Luckily my landlord is an old family friend and I'm paying £495 for a one bed flat off Lewes road, he could easily be charging £750, which I would 100% not be able to afford

 

[NooBHA]

The level of rents do affect the less affluent so I completely agree with you. As the owner of one small flat in central Brighton I am not really relaxed with the basic concept of taking money from someone in return for a roof over their head. I do it because I need to have that income but I try to square the circle by being the best landlord I possibly can be, and charging around 10 per cent under the market rate. We're not all Rachmans - I like to think that most of us are like HantsSeagull. (And it's worth mentioning that higher rents in certain areas don't necessarily mean that local landlords are greedy - in fact, the best returns on capital currently tend to be in cheaper parts of the country. Because he had to pay disproportionately more for the property the landlord in Brighton is making less than one in, say, Leeds.)

Listen, I have no problem with peple maximising their investment and getting as high a rent as they can for their investment. All I really said was that it makes it difficult for poorer people to afford them. Thats not your problem. You can't be expected to take on the woes of the under privileged. Thats Governments job to susidise the less well off or to cap rents or to build more social housing.