How can people afford to rent anymore?

[XmisterIS]

'tis madness, I tell you ...

It would seem that in these very difficult economic times, the price of rented accomodation is eye-wateringly expensive!

Back before I bought my house (about 9 years ago now), I rented a spacious two-bed flat, with off-street parking, in an upmarket area, for £450 pcm.

Apparently that kind of money will get you a garden shed nowadays!

I have a friend who is renting a room (yes, one single room) for £120 per week - that works out at more rent for one single room than I was paying for a whole flat! Apparently, that is pretty much the going rate now where I live.

And real incomes have actually dropped, if anything!

Madness ...

(contemplating doing buy-to-let ...

)

 

[snailracer]

There is nothing rational about the housing market in the UK.

 

[carolonabike]

My son who graduated in the summer is renting a lovely 3 bed semi for £800 per month . At his age we had our first mortgage (complete with 15% interest rate) We were poor as church mice but at least we were on the property ladder. Buying doesn't seem to be an option for them unless we were to put down a huge deposit. Him and his girlfriend both have student loans to pay back too, I can't see how it's possible to save for a deposit at the same time.

 

[ASC1951]

'tis madness, I tell you ...

It would seem that in these very difficult economic times, the price of rented accomodation is eye-wateringly expensive!

.....

(contemplating doing buy-to-let ...

)

It depends where you live. Average rents are generally not increasing in the north; and in the areas where most tenants receive Local Housing Allowance, rents are actually falling.

And before you jump into buy-to-let, do reflect that in many parts of the south (and certainly in most of Hampshire), gross rental yields are about 5%. You can get as good a return with less risk from other investments.

 

[wiggydiggy]

£435, small 1 bed flat, combined kitchliving room. Would not suit 2 people but for me it is fine, has secure off street parking.

Frankly I have £0 available to save for a deposit, even under the 'house buy' part owenership scheme that ended last year you still needed a 5% deposit.

Right now I'm thinking give up on buying, and when I can afford to start saving for a deposit I will but instead use the cash to have a cruise or round the world trip every so often!

 

[Deleted member 1258]

I remember renting bedsits in the early 1970's and paying about £5 a week in rent, in the late 1970's I had a small flat, two rooms and a shared bathroom, and it was costing £10 a week in rent. I brought my first house in 1982, 2 bed 2 up 2 down with a small kitchen/bathroom extension, for £10500, £500 deposit and a £10000 mortgage, moved in and could only afford to furnish 2 rooms. Now I have my youngest son and his Fiancée living with us as they cant afford a place of their own.

 

[Black Sheep]

I am about to own (going through probate at the moment) a 2 / 3 bedroom semi detached house in a nice part of Barnsley, If I were to rent that out it wouldn't cover the rent on my flat in the Thames valley area.

I know my manager's current mortgage is £1300 per month, i'd seriously consider renting if it was a few hundred per month lower!

 

[Jezston]

At 33 I find myself in a position where I may be able to buy my first place fairly soon.

Sadly I had to lose two members of my family to be able to afford to. No chance of doing it entirely with my own money.

Cest la vie.

 

[andy0001]

Just moved back to London, we was renting a 2 bed house in Hitchin for £900 a month and both spending £400 a month each to travel into london to work, out of that four hundred quid you don't even get a seat on the train so have to stand in a cramped space, unless you leave for work earlier than needed.
we now live in Barnet with a five minute walk to the tube and we always get a seat, travel costs have reduce by half each and we have everything we need on our doorsteps.
with house prices and deposits being so high we cannot afford to buy for a good few years yet, i think i'm going to have to take a second full time job to get the money together for a deposit even more so as we plan to start a family soon.

 

[SavageHoutkop]

the 'house buy' part owenership scheme that ended last year you still needed a 5% deposit.

I think there are still others out there but I wouldn't go near them. If you can't afford the house now, you won't be able to buy the other equity partner out in 10/20 whatever years' time either. (Another non-house-owner here, who has looked into those schemes...)

 

[Glover Fan]

I live just outside Bristol and we are paying £780/month for a 3 bed end terrace. To buy a house like this would be about £200,000. We somehow would need to find £20,000 to secure just a 10% deposit on a house. Then the mortgage would be at least £1000/month even at these historically low interest rates.

I understand negative equity is bad for homeowners, but at least they "own" a house. My wife and I have a very decent combined income and are still struggling to see how long it will take to secure a deposit.

The market has to collapse. I don't know who or what is to blame for current high prices in the south, presumably supply and demand has a certain amount of blame attached to it, but what impact does buy to let, immigration and the attitude of homeowners to treat houses as investments instead of a place to live have on the current market?

 

[ASC1951]

I live just outside Bristol and we are paying £780/month for a 3 bed end terrace. To buy a house like this would be about £200,000.

Well, that is the source of your problem. Most people would rather live just outside Bristol than e.g. in Yorkshire. Your house would probably cost £80-120,000 up here and be readily affordable for you. So unless you are earning at least 40% more than you would up here (and some people do), you have to ask whether all the other advantages outweigh not being able to buy your own house.

I've lived in Bath. It's a nice part of the country, but so are many other places. Your money, your choice.

 

[Glover Fan]

Well, that is the source of your problem. Most people would rather live just outside Bristol than e.g. in Yorkshire. Your house would probably cost £80-120,000 up here and be readily affordable for you. So unless you are earning at least 40% more than you would up here (and some people do), you have to ask whether all the other advantages outweigh not being able to buy your own house.

I've lived in Bath. It's a nice part of the country, but so are many other places. Your money, your choice.

Surely you move where the jobs are? It's not exactly the most fluent job market out there at the moment either. I moved to Bristol from rural Somerset because I couldn't get a suitable job where I was living.

 

[asterix]

No doubt job availability is a key factor.

My brother has just downsized (kids left home to go to university) but still could not afford anywhere nearer than a 90 minute journey to work.

There some very pleasant parts of Yorkshire but is there employment?

 

[Becs]

I pay £910 for a studio flat! No transport costs and bills included. £30,000 of student loan, half that again to the parents, no house for me for a while!