My son worked hard & saved & bought a flat last year. ALL of his school friends have done the same. It's about attitude in the main & being financially astute.
I had no privilege and nor did my girlfriend, unless you class living in council houses with our parents as privileged.
Did you give much help to your son financially?
You're so f****** nosey
Oh look. Another greedy landlord has arrived on the scene.
What hasn't been brought up yet is that young people are increasingly forced - forced - to cohabit with a partner, because only a dual income comes anywhere close to covering not only the deposit and mortgage for a bought flat (even a one-bedroom flat) but the RENT for any reasonable accommodation that isn't a room in shared lodgings in London. Doing it solo is unthinkable.
I am in a dual-income cohabiting situation. Our combined earnings are over 80k per annum (with her as marginal breadwinner). We don't drive. We don't go to the Maldives (we do have a trip to Slovenia in the offing, is that an indulgence too far?) And we certainly don't have any children. We're both in our mid 30s and we've been renting for well over a decade apiece. She has managed more savings than me, probably because she's very sensible with her money, but we both like to enjoy things such as, y'know, food that isn't dry bread and drinks that aren't water.
What more could we do? My second job IS my job - when I need to earn more, I take on more work as I'm paid by the hour. And I'm currently operating, as usual, at close to maximum capacity. The notion that she would take on a second job is an absolute nonsense given her long, pressurised and stressful hours that she struggles to cope with quite enough thank you.
We're doing it fairly close to right, I'd say. And London has slim, slim pickings for us.
It's interesting because you & your partner earn far more than my son & his partner. He lived with parents, saved & bought at age 27. He even owns a flash car & has a sleeve tatoo.
Whereas you started to rent around the same age, even though housing was far cheaper 10 years ago.
As Rob7Lee says, some people manage to buy unassisted, even though they earn a lot less than others who find it impossible to buy.
I don't think anyone disputes housing is increasingly more expensive, but if people can live "at home" and save as soon as they start work, it can be done as my son & ALL 6 of his friends have achieved this in the last 2 years.
Was it hard to buy a house in the 80's and 90's. Houses were only 4x earnings, the mortgage market was less regulated, mortgages were easier to get and sometimes even with 5% deposits. The deposit amounts themselves were much less. Rent was cheaper, entertainment was cheaper, transport was cheaper, groceries were cheaper, energy was cheaper. There was more money left at the end of the month to save towards a deposit that also cost far less. And when you did get a house, you paid it off much quicker.
It will never be that easy again.
No. It was easier to buy in the 90s. Was working in Sainsburys on £12000 a year and managed to buy a 2 bed flat. Youngsters have it harder nowadays. Nearly most things you can't compare generations. I'm 49 and my old man 72. Had a conversation once about credit cards and my old man was saying how good his generation was with money. I reminded him credit cards weren't about when he was 18, what would he have been like if they were? Probably worse than you youngsters was his reply.
There is a fantastic book called 'The Psychology of Money' by Morgan Housel which I would recommend anyone to read. Most of it isn't groundbreaking, but it really does break down the basics behind wealth accumulation and the varying differences of attitudes towards money. There is a really good passage at the end which discusses the change in financial outlooks, the rise of credit and the difference in people's belief of what a minimum standard of living was and the convergence of what the rich/poor expect - essentially by the late 20th century both rich and poor would expect a half decent car/TV/luxury good setup where as at the start of the century the poor would never have any access to what the rich could own. I can't recall it perfectly, but it just seemed spot on.
The one quote form the book that stuck with me: 'Saving money is the gap between your ego and your income, and wealth is what you don't see'
For those who hate reading, there is a watchable series on Netflix called 'How to Get Rich'. It gets a bit samey but essentially follows couples/young families in America struggling to get on top of finances, savings, their monetary goals. Again, nothing groundbreaking but for some people it may well be new info and really does outline how you can be savvy with your income to create the 'rich life' you desire, which of course is different for everyone.
Bringing it back to the main conversation topic, I should add I am in the younger bracket of posters on here and definitely spend in a way that most would not comprehend and see as unnecessary (holidays, meals out etc). I'm lucky to earn ok and can afford a property albeit I still have frustrations that what I can afford for my (perceived) achievements and earnings doesn't seem 'fair' vs what came for generations before. Gain qualifications, get a job, put in long hours for the fortunate privilege of being able to buy a 500k flat in areas dismissed by anyone in the generations before me as shitholes. Even if you can reach this goal of owning which we put on a pedestal in this country, it still leaves you feeling fairly unfulfilled in London. I don't mean to offend ANYONE with my words, there's enough arguments already in here lol. I know I am fortunate, but unfortunately it does feel like the people that came before were dealt a far greater hand and oftentimes, through luck not achievement - the industry I work in does not help with this mindset.
It's a shame people bicker so much on this. To be honest I can understand pretty much everyone's opinion here. I feel for most young people the goal of owning can feel so far away that it becomes a 'what's the point' and spending fast money to enjoy life overtakes the longer term vision. The older generations didn't have the accessibility to these luxuries we make the most of today. We cannot compare different times and it's become a fairly divisive topic because attitude to housing differs due to personal situation. The sad conclusion is there is no magic wand fix to the housing mess in this country and it is impossible to see how it can change because there is so much personal interest from people who have obtained wealth through housing to keep it that way.
Even if there are some spats in this thread, it's a great read!!
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
I've tried to install in my daughters and anyone at work etc that asks the following; whatever you earn pretend you earn 80% of that and save the other 20%.
Now clearly that's a desirable, isn't meant literally, and almost no one will be able to do that all through their lives, but it's meant to indicate to live within your salary and where possible save some. Money makes money, debt makes debt.
A prime example is my sister in law, every year she'll spend just a little more than she earns, so come Christmas/birthday etc she will always ask for money as 'my car needs an MOT or a new tyre' etc. Purely the choices of a new car and holidays in places like Mexico or Dubai rather than say Spain. She should quite easily be able to live well within her salary.
It came to a head last weekend when we was all out for the evening, long story short she was moaning about how long she'll have to work........ because she doesn't have any pension. I looked up her work and it turns out they double what you pay in up to a maximum of 6% (so they would put in 12%), she's worked there 16 years.
So to me that's just bad choices, it's not affordability, it's not someone trying to put food on the table and clothes on their back, it's simply the choice of how they wish to live.
Saving money is the gap between your ego and your income“
That’s an interesting quote, can someone simplify it for me so I can understand it properly
Wealth is created by not buying what you could buy today in order to have more or more options in the future. In other words as I've said above, live within your salary and save/invest some.
The two grads are my work are the opposite examples. They must have done £100k each on their coffee/food/rent in the past three years. Had they of just halved that spend they would have now £50k invested making them £3k per year and compounding, rather than simply waiting for the next pay check.
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
In no way is that anywhere near true (if you are "living at home"). But perhaps yes if you are already paying a fortune to fund someone else's mortgage. My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that. I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
Especially when you don’t have the physique to carry it off. Too many people in top end designer sportswear that just don’t have the overall look. Me? Around the Next/M&S level.
Especially when you don’t have the physique to carry it off. Too many people in top end designer sportswear that just don’t have the overall look. Me? Jacamo
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
In no way is that anywhere near true. My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that. I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
So.... 40k job Stay at home for 7 years Save 120k
Sounds like a plan, some of the housing ladder solutions seem very out of touch for most people living in 2023. Thank god there's an abundance of 40 grand jobs to go round straight from school.
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
In no way is that anywhere near true. My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that. I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
So.... 40k job Stay at home for 7 years Save 120k
Sounds like a plan, some of the housing ladder solutions seem very out of touch for most people living in 2023. Thank god there's an abundance of 40 grand jobs to go round straight from school.
Abundance is probably pushing it, but in my work we employ maybe 300 apprentices (so A Level leavers) and maybe half as much again in Grads. Whilst neither start on £40k (around £25k and 32-35k) by the time they do their 3 years, training and exams both will be on that or more. That's one company, and although one of the larger probably equates to less than 10% In and around Lloyds each year.
And what is the issue in saving for up to 7 years? does everything have to be today, tomorrow this or next year? Do you not bother putting money in a pension as it'd take 40 years?
I'd envisage if you saved half your take home pay on a £40k gross salary, invested wisely including some in LISA's you'd be getting near to a 50% deposit on a £300k property after 7 years.
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
In no way is that anywhere near true. My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that. I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
So.... 40k job Stay at home for 7 years Save 120k
Sounds like a plan, some of the housing ladder solutions seem very out of touch for most people living in 2023. Thank god there's an abundance of 40 grand jobs to go round straight from school.
Going back a long long time, but starting out a mate and I bought a run down two bed house together. Did it up over a couple of years and sold it to give us both a deposit. Both had two jobs and every penny went on bills and materials. Thankful for loving parents and Sunday lunch 😋
I then bought a condemned and boarded up property and had a cement mixer in the living room for two years. I am not in the building trade and did what I could and bought in experts when needed. Took four years. I guess it is a matter of just how determined you are to get on the property ladder. Prices aren’t going to go down you have to move past that.
I must add that the professionals I bought in were fantastic and offered a lot of advice and on occasions help.
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
In no way is that anywhere near true. My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that. I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
I hear what you are saying, BUT your example is not always going to be the case. So I still go back to the case if they are renting whilst trying to buy a property.
I am not saying I am right in my opinion btw as there are differing circumstances of course.
"Young people today love luxury; they have bad manners, contempt for authority, they show disrespect for elders and love gossip in the place of activity."
Who said that?
Socrates.
Same things said every generation since time immemorial.
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
In no way is that anywhere near true. My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that. I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
So.... 40k job Stay at home for 7 years Save 120k
Sounds like a plan, some of the housing ladder solutions seem very out of touch for most people living in 2023. Thank god there's an abundance of 40 grand jobs to go round straight from school.
I'm trying to be sensible here. My son & all his friends went on holidays, restaurants, pubs, clubs, bought cars etc etc. They all had a normal active social life & still saved as well. It appears for many you either have a sensible financial head and your number 1 priority is to get on the property ladder from the day you start work or you don't. Fail to plan, plan to fail.
Personally my number 1 goal when I left school was to save, get a mortgage and move off our council estate, where I had lived since age 5.
It wasn't easy, far from it, but I knew I'd rather have a house than a flash car, buy expensive clothes every week etc.
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
In no way is that anywhere near true. My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that. I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
So.... 40k job Stay at home for 7 years Save 120k
Sounds like a plan, some of the housing ladder solutions seem very out of touch for most people living in 2023. Thank god there's an abundance of 40 grand jobs to go round straight from school.
Abundance is probably pushing it, but in my work we employ maybe 300 apprentices (so A Level leavers) and maybe half as much again in Grads. Whilst neither start on £40k (around £25k and 32-35k) by the time they do their 3 years, training and exams both will be on that or more. That's one company, and although one of the larger probably equates to less than 10% In and around Lloyds each year.
And what is the issue in saving for up to 7 years? does everything have to be today, tomorrow this or next year? Do you not bother putting money in a pension as it'd take 40 years?
I'd envisage if you saved half your take home pay on a £40k gross salary, invested wisely including some in LISA's you'd be getting near to a 50% deposit on a £300k property after 7 years.
There are people on here that have been there and done it the hard way. Then advised their kids, who have also recently got on the property ladder (without financial assistance).
You are either financially sensible, prudent, know what you most want most and are determined to work hard to achieve your goal, by not wasting money that you need to save or you aren't and probably never will be.
As soon as you choose to rent you are making it very difficult to then buy, because your potential savings to enable your property purchase, is instead going to someone else to pay for their property purchase.
Yes it's very difficult and yes it will continue to get more difficult, as the population growth exceeds the new available properties every year.
If you HAVE to move out & rent because you are unsafe "at home" or some other terrible situation like you never had a home, then you have no choice.
But if you do have a choice the recommendation is to save as much as you can and get on the property ladder. You rarely here of people being unhappy that their priority to get on the property ladder was a bad choice that they regret.
PS I was a financial adviser before retiring aged 49, brought up on a council estate and was probably the poorest family in my class (but happy). Rob7Lee knows more about fiance than many financial advisers. I'd like to think we know a bit about good finance.
Nowadays, in London, someone buying a property by themselves will have to be on 100k upwards to be able to get on the housing ladder.
All the whilst people are renting then you are going to struggle to be able to save sufficent money to put towards a deposit, it is almost an impossible situation.
Consequently people are relying on inheritance or help from parents.
In no way is that anywhere near true. My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that. I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
I hear what you are saying, BUT your example is not always going to be the case. So I still go back to the case if they are renting whilst trying to buy a property.
I am not saying I am right in my opinion btw as there are differing circumstances of course.
Yes sorry Gary, I didn't read what you said properly. If you are renting and perhaps spending £20K pa in rent then you would need to earn £30K in order to spend that £20K.
Just said on sky news , Bristol Council might look into capping rent increases.
Is that the starting whistle for all landlords in Bristol to raise the rents before they get their plans in place?
I can see how they can cap their own rents, but how would they cap private rents?
There does seem a danger that if they say rents should have increased no more than (say) 20% over the last 3 years, that all the landlords that have not done that will then do exactly that.
It seems to me that rents aren’t the problem, after all, renting works across the rest of Europe seems to work OK.
The problem appears to be a simple supply and demand issue. Council/charity housing has insufficient housing stock to house those that need assistance and not enough house building is being achieved to satisfy those who wish to buy so prices continue to rise faster than earnings - in London and the Southeast.
£40k for a 2 bed in Birmingham. We need to move more government jobs out of London and encourage companies to move jobs out as well so demand falls.
Sudden rent capping or rent increase capping will be disastrous, Landlords if they aren't getting enough will most likely just not renew that tenancy, then advertise a new one at a higher price.
Germany in the main has a good system, they have a rent increase cap of I think 20% over 3 years, however most do stepped rent where it goes up every month rather than one big bang of 20%, but most landlords will make sure they get that 20% every three years, Munich is as expensive as London to rent now, if not more.
Back on topic a little what with me being a Trustee/rip off Landlord
A little bit of good news in that the Governments U Turn on EPC ratings for new tenancies in 2025 and all by 2028.
We try to make our properties as efficient as possible for our tenants, all now have boilers sub 10 years old, new double glazing in the past 10 years and also we've just re insulated all lofts to a higher spec.
Our problem is all bar about 5 of our properties are pre 1900, so no cavity wall. We had a couple of surveyors look at the houses and they like I expected due to their terrace nature and build are not suitable to clad them externally. Therefore in reality the only option would be to clad internally. I won't bore you with all the details around wiring and plumbing but in essence to get to a C for these properties would likely mean between 30-35k each. It would have been just another nail in the coffin. It would also mean any tenant would need to move out for around 6-8 weeks.
So at least that for now has not been the final nail, just a few more nails to deal with!
Comments
Another greedy landlord has arrived on the scene.
He lived with parents, saved & bought at age 27. He even owns a flash car & has a sleeve tatoo.
Whereas you started to rent around the same age, even though housing was far cheaper 10 years ago.
As Rob7Lee says, some people manage to buy unassisted, even though they earn a lot less than others who find it impossible to buy.
I don't think anyone disputes housing is increasingly more expensive, but if people can live "at home" and save as soon as they start work, it can be done as my son & ALL 6 of his friends have achieved this in the last 2 years.
It was easier to buy in the 90s.
Was working in Sainsburys on £12000 a year and managed to buy a 2 bed flat.
Youngsters have it harder nowadays.
Nearly most things you can't compare generations.
I'm 49 and my old man 72.
Had a conversation once about credit cards and my old man was saying how good his generation was with money.
I reminded him credit cards weren't about when he was 18, what would he have been like if they were?
Probably worse than you youngsters was his reply.
The one quote form the book that stuck with me: 'Saving money is the gap between your ego and your income, and wealth is what you don't see'
For those who hate reading, there is a watchable series on Netflix called 'How to Get Rich'. It gets a bit samey but essentially follows couples/young families in America struggling to get on top of finances, savings, their monetary goals. Again, nothing groundbreaking but for some people it may well be new info and really does outline how you can be savvy with your income to create the 'rich life' you desire, which of course is different for everyone.
Bringing it back to the main conversation topic, I should add I am in the younger bracket of posters on here and definitely spend in a way that most would not comprehend and see as unnecessary (holidays, meals out etc). I'm lucky to earn ok and can afford a property albeit I still have frustrations that what I can afford for my (perceived) achievements and earnings doesn't seem 'fair' vs what came for generations before. Gain qualifications, get a job, put in long hours for the fortunate privilege of being able to buy a 500k flat in areas dismissed by anyone in the generations before me as shitholes. Even if you can reach this goal of owning which we put on a pedestal in this country, it still leaves you feeling fairly unfulfilled in London. I don't mean to offend ANYONE with my words, there's enough arguments already in here lol. I know I am fortunate, but unfortunately it does feel like the people that came before were dealt a far greater hand and oftentimes, through luck not achievement - the industry I work in does not help with this mindset.
It's a shame people bicker so much on this. To be honest I can understand pretty much everyone's opinion here. I feel for most young people the goal of owning can feel so far away that it becomes a 'what's the point' and spending fast money to enjoy life overtakes the longer term vision. The older generations didn't have the accessibility to these luxuries we make the most of today. We cannot compare different times and it's become a fairly divisive topic because attitude to housing differs due to personal situation. The sad conclusion is there is no magic wand fix to the housing mess in this country and it is impossible to see how it can change because there is so much personal interest from people who have obtained wealth through housing to keep it that way.
Even if there are some spats in this thread, it's a great read!!
I've tried to install in my daughters and anyone at work etc that asks the following; whatever you earn pretend you earn 80% of that and save the other 20%.
Now clearly that's a desirable, isn't meant literally, and almost no one will be able to do that all through their lives, but it's meant to indicate to live within your salary and where possible save some. Money makes money, debt makes debt.
A prime example is my sister in law, every year she'll spend just a little more than she earns, so come Christmas/birthday etc she will always ask for money as 'my car needs an MOT or a new tyre' etc. Purely the choices of a new car and holidays in places like Mexico or Dubai rather than say Spain. She should quite easily be able to live well within her salary.
It came to a head last weekend when we was all out for the evening, long story short she was moaning about how long she'll have to work........ because she doesn't have any pension. I looked up her work and it turns out they double what you pay in up to a maximum of 6% (so they would put in 12%), she's worked there 16 years.
So to me that's just bad choices, it's not affordability, it's not someone trying to put food on the table and clothes on their back, it's simply the choice of how they wish to live.
The two grads are my work are the opposite examples. They must have done £100k each on their coffee/food/rent in the past three years. Had they of just halved that spend they would have now £50k invested making them £3k per year and compounding, rather than simply waiting for the next pay check.
But perhaps yes if you are already paying a fortune to fund someone else's mortgage.
My son & his 6 school friends who have all bought in the Bromley area in the last 2 years don't earn anywhere close to that.
I would say you would have to be on £40K upwards if living "at home" and saving maybe half of your salary for say 7 years.
Too many people in top end designer sportswear that just don’t have the overall look.
Me? Around the Next/M&S level.
40k job
Stay at home for 7 years
Save 120k
Sounds like a plan, some of the housing ladder solutions seem very out of touch for most people living in 2023. Thank god there's an abundance of 40 grand jobs to go round straight from school.
Verses
Buy designer clothes now and buy an expensive car.
That sort of thing.
And what is the issue in saving for up to 7 years? does everything have to be today, tomorrow this or next year? Do you not bother putting money in a pension as it'd take 40 years?
I'd envisage if you saved half your take home pay on a £40k gross salary, invested wisely including some in LISA's you'd be getting near to a 50% deposit on a £300k property after 7 years.
Thankful for loving parents and Sunday lunch 😋
I guess it is a matter of just how determined you are to get on the property ladder.
Prices aren’t going to go down you have to move past that.
Ignore me Lincs
I would never try and pull rank over your mum .
Same things said every generation since time immemorial.
My son & all his friends went on holidays, restaurants, pubs, clubs, bought cars etc etc.
They all had a normal active social life & still saved as well.
It appears for many you either have a sensible financial head and your number 1 priority is to get on the property ladder from the day you start work or you don't.
Fail to plan, plan to fail.
Personally my number 1 goal when I left school was to save, get a mortgage and move off our council estate, where I had lived since age 5.
It wasn't easy, far from it, but I knew I'd rather have a house than a flash car, buy expensive clothes every week etc.
Then advised their kids, who have also recently got on the property ladder (without financial assistance).
You are either financially sensible, prudent, know what you most want most and are determined to work hard to achieve your goal, by not wasting money that you need to save or you aren't and probably never will be.
As soon as you choose to rent you are making it very difficult to then buy, because your potential savings to enable your property purchase, is instead going to someone else to pay for their property purchase.
Yes it's very difficult and yes it will continue to get more difficult, as the population growth exceeds the new available properties every year.
If you HAVE to move out & rent because you are unsafe "at home" or some other terrible situation like you never had a home, then you have no choice.
But if you do have a choice the recommendation is to save as much as you can and get on the property ladder. You rarely here of people being unhappy that their priority to get on the property ladder was a bad choice that they regret.
PS I was a financial adviser before retiring aged 49, brought up on a council estate and was probably the poorest family in my class (but happy).
Rob7Lee knows more about fiance than many financial advisers.
I'd like to think we know a bit about good finance.
Good luck all.
If you are renting and perhaps spending £20K pa in rent then you would need to earn £30K in order to spend that £20K.
So yes you would need to be earning £70K+.
I can see how they can cap their own rents, but how would they cap private rents?
It seems to me that rents aren’t the problem, after all, renting works across the rest of Europe seems to work OK.
£40k for a 2 bed in Birmingham. We need to move more government jobs out of London and encourage companies to move jobs out as well so demand falls.
Won’t hold my breath.
Germany in the main has a good system, they have a rent increase cap of I think 20% over 3 years, however most do stepped rent where it goes up every month rather than one big bang of 20%, but most landlords will make sure they get that 20% every three years, Munich is as expensive as London to rent now, if not more.
A little bit of good news in that the Governments U Turn on EPC ratings for new tenancies in 2025 and all by 2028.
We try to make our properties as efficient as possible for our tenants, all now have boilers sub 10 years old, new double glazing in the past 10 years and also we've just re insulated all lofts to a higher spec.
Our problem is all bar about 5 of our properties are pre 1900, so no cavity wall. We had a couple of surveyors look at the houses and they like I expected due to their terrace nature and build are not suitable to clad them externally. Therefore in reality the only option would be to clad internally. I won't bore you with all the details around wiring and plumbing but in essence to get to a C for these properties would likely mean between 30-35k each. It would have been just another nail in the coffin. It would also mean any tenant would need to move out for around 6-8 weeks.
So at least that for now has not been the final nail, just a few more nails to deal with!