Rents soar by up to 41% in five years

So if rents in the UK have increased on average by 13.7% over the last 5 years that averages out to be roughly 2.5% per year - I fail to see why that is some shocking revelation, just standard inflation really. In fact I'm shocked that it is so low.

I didn't say inflation has increased by 2.5% each year, I said on average it has increased 2.5% each year i.e. that's the annualised rate of inflation (based on the figures in this article).

And factually, over the last 5 years wages (either total pay or regular pay) in the UK have exceeded the CPI

Source : https://www.statista.com/statistics/1272447/uk-wage-growth-vs-inflation/

And you say inflation shouldn't exist; well that's a big topic (ask any economist and you'll probably get 3 opinions on that) but the reality is that it does exist so we all just need to get used it unless you can articulate a new economic theory that central banks and governments around the world buy in to.

Reply to the comment left by Katey Major at 06/10/2023 - 02:02If you want to save for a deposit you will have to make a few sacrifices like the rest of us did. Live cheaply-share accommodation for a start. Bin the gymn-the streets are free. How on earth do you spend so much in internet and phone? My phone is 10 years old and I spend £8 pcm in it. My internet is £24pcm. You can shop for clothes in charity shops. The majority of landlords on here will have done most of these things over a number of years in order to save for their deposit. The decision is yours.

According to the Bank of England inflation calculator, inflation for the period was 24%. Considering house prices have gone up way more than that, and interest rates are back to or even above previous levels, with tenant tax and SDLT and other costs added, it's obvious that rents are long overdue for a reset.

Reply to the comment left by Peter Merrick at 06/10/2023 - 09:42
Not really, what's obvious to me is Supply/Demand and supply of rental properties is low and demand is high, that means rents will continue on their upward trajectory.

Reply to the comment left by JB at 06/10/2023 - 06:45
I have no idea what originally posted by Katey as that seems to have gone, but I can only guess that it was their expenses and how little they had each month.

You speak of sacrifices, yet I have nothing left to sacrifice and cannot save. I am at my limit of what can be afforded.

I am doing everything people say I should do. I never eat out making all of our meals. You mention clothes, I don't even buy from charity shops. I don't buy clothes at all in order to save money. The t-shirt I am in right now is 15 years old.

I have had financial advisors go through my bank statements, my income my outgoings and what they have said to me is there is nothing more that can be done. I am already spending as little as I can. I literally cannot sacrifice any more.

As much as it may hurt to have to think so, the nation even 5 years ago is not like the one it is now. The options open to people to get themselves ahead have disappeared. It is an unfortunate case that for many they assume that life will be the same for the next generation as it was for them.

Reply to the comment left by The Forever Tenant at 06/10/2023 - 14:46
I feel you you and others who have nothing left to sacrifice. The original poster DID have disposable income to sacrifice but chose not to. Strange that the original post has been deleted.

The reason for rent rises can be placed fairly and squarely at the the feet of this so called Conservative government, Generation Rant, Shelter, Acorn and the like in their campaigns of over- taxation, over- regulation, and constant demonisation of landlords. Mortgage increases have not helped.

As a result more demand ( the population continues to grow) and less supply
( landlords voting with their feet) means rents go up.

I think we're at a point where you can sacrifice all you like... you still won't save yourself onto the ladder because it's being pulled up faster than the rate at which you can save! My aunt joked with me last week that some people are worth more dead, than alive! And I get it. The bills finally stop.

Only really 4 options (which I read last week in YouTube comments):

1. Move in with family (not everyone can)
2. Move in with friends (not always possible)
3. Move to a cheaper part of the country (then the work may not be there, or the travel costs and time eat up any savings you might make)
4. Move abroad and work remotely (if you can... simply to save)

What I just want everyone to conclude is that WE NEED MORE AFFORDABLE HOUSES BUILT and where possible, bring empty homes back in use. Note, if you look on YouTube, you'll realise that these escalating rents are happening all over the place... not just the UK but in Canada, the USA...

There's so much regulation in this country its counter productive. In some places (Article 4) you need planning permission to change of use a house to a HMO. I'm not convinced a group of friends can live as cheaply as before if its classified as a HMO. Maybe, on a normal AST - yes. But then (depending on your age and personal circumstances) can you co-operatively house share on a single AST to get your housing cost down?

Adult kids are still at home and I don't blame them. If you can stand your family - (and they can stand you) - stay there! Save up. Wait for someone to die or something because this situation is totally out of control. Generation Rent is an appropriate name. Things are bad. And I know it's set to get worse because nothing is being done.

Along comes more luxury living and riverside apartments... whose got the money to buy this stuff? Often times, international investors. They don't even bother marketing to the locals as they know they haven't got it like that. It's all by design.

Make the cost of living extremely expensive, people delay all sorts of major life decisions as they can't afford it. The rat race continues and then we go into population decline. Check out Italy and Japan. There's whole villages abandoned and properties for sale for £1 as there's noone to live there! No services either. Schools closed. Everyone gone.

Reply to the comment left by The Forever Tenant at 06/10/2023 - 14:46
I sympathise with you, having been very poor in my early years. The only consolation I can offer is that at least you aren't being taxed on a loss like siome of the landlords who are now selling up.