Is the UK's Rental Crisis Worse Than the Housing Crisis?
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- Опубликовано: 28 май 2024
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The housing crisis is getting a lot of attention in the UK, but issues for renters have seemingly slipped under the radar. So in this video we unpack the growing rental crisis and explain the major issues 'generation rent' face in the months ahead
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Intro 0:00
The Crisis Explained 1:00
Why has this happened? 4:41
How to Fix it 7:15
Sponsor 8:40
It's not a mortgage or a renting crisis, it's a straight up housing crisis.
Yes. The freemarket working as it should
@@toyotaprius79 the fact that private companies are incentivised to keep it building to a minimum in order to keep prices high is awful. Especially as new houses are straight up terrible when it comes to quality.
@@himaro101 investors don't even need a tenant to make money back now. the vacant property will just appreciate fast enough that the rent is not worth the hassle.
why risk a tenant damaging your investment and inflicting legal obligations on you. just leave it vacant and ride the wave.
Well things were fine on the supply and demand for housing until _something happened_ in 1997. No one seems to know, or willing to expound upon it, but now the demand for housing, in a nation experiencing _lower_ birth rates, is higher than ever. 🤔
Exactly, there's no distinction.
It's worth noting that a staggering amount of MPs are also landlords themselves and as thus benefit directly from higher rent. Conflicts of interest are so fun.
Video says it at @8:00. Maybe worth watching all the way before commenting xx
@@turumbitix That's not what they say. They say the base is homeowners and landlords, not the MPs. I did watch all the way.
I would say it's pretty much the same point - but you're right it's not exactly what you said 😘
My bad on assuming you didn't watch.
Its important to note that of the 87 MP's we know to be landlords, 68 of them are Conservative, nearly 1 in 5 Tory MP's are landlords including Jeremy Hunt, Suella Braveman, the culture secretary Lucy Frazer, the education secretary Gillian Keegan and the justice secretary Alex Chalk.
That's not to say Labour and the other parties don't have landlords as MP's (Labour have a few on there front-bench sadly), but its definitely more of a problem with the Conservatives than with anyone else. The fact is this crisis is more likely to be solved with the Tories out of power, than with them in it.
Story time.
Im a Landlord in London.
About 18 months ago the contract was up for renewal
The AGENCY wanted to raise the rent by 20% ! I said no it actually turned into a heated exchanged. He wanted to raise the rent to 'match' other properties but the local market was set by the same dan agencies ! Its the AGENCIES that are wrecking the market.
We finally agreeded on a 5% rise.
Then the tennent asked fir a 3 year lease I agreed the agency refused I had to again have a vibrant dicussion with them.
Im not greedy and not lazy but I can easily see how a lazy landlord will let the agency go nuts and screw the tennents.
Nobody EVER talks about the agencies.
Yup. Companies exist to make money, not to provide a service. You not agreeing to the price hike other property owners agreed to, is losing them potential money. Also sounds like a good service for either local or state government to provide, the central renting hub that the Agency represented.
Interesting insight, just out of curiosity can I ask why you rent out via an agency assuming this is your only rental property? I agree that agencies have made things much worse and back when you had actual contact with your landlord, an actual person and someone who cares about the state of their asset, things were much better
Interesting insight. Thanks for that. So what is the agency’s benefit here? Do they charge a percentage based on the amount in rent?
And could I ask you as well why you don’t you change agencies? Is that possible? Just curious! Thanks!!
@@thisismetoday They take part of the rental income while not having to provide maintenance which is usually left to the landlord, therefore their operating costs are a lot lower.
I'd also say with switching there was probably a contract signed for X amount of years plus there's probably fees if you wish to leave the contract (maybe even after it's ended - you know what certain agencies are like).
Whilst that is true, majority of landlord will want to raise it as much as possible simply because it's the trend - someone will be forced to pay. I was given notice on my previous place right before christmas because the agency wanted to refurbish the entire building, which they never did. Now they can simply rent it at nearly double the price to all flats investing £0 into it. Was essentially forced to move and now paying 1k+ rent alone in a place that doesn't even have double glazing and the absolute worse conditions ever. UK was already well known for having poor quality housing, but that's getting much worse as there's no incentive to invest in properties.
Me in my twenties: ''I wish I built a house in 1987''
I‘ve been renting for 10 years and every single year this gets worse.
I’m now seriously considering moving abroad as from the 2008 crash to the lockdowns to the COL crisis this country has declared war on anyone under 40.
Yet people under 40 come here in their hundreds of thousands every year to live and work.
Here's some good news: you won't be "under 40" forever
Do it. You'll be so much better off.
But move where? I've friends in the US and Australia and the problem is happening there too.
@@ab-ym3bfit's nothing about being 40, it's about being born in a certain generation. People who are over 40 now bought their houses at less than 25% what they are worth today. Meanwhile younger generations don't have any such access to affordable housing, causing people under a certain age to be stuck in a rent cycle. This might get better as older generations pass away, but it's not happening at a rate that will make housing prices drop significantly any time soon. Also, allowing foreigners from any nation to buy up vast amounts of our property, especially in big cities, does nothing to help us either
LMAO finding 25% of income on rent as "terrible" I was lucky if I could find a place to rent that was less than 50%. There is no way we'll ever be free of this burden.
Yes there is it's just not something you're willing to do.
That being living in a much smaller place than you have now or living with your parents longer.
So that way you can actually save up buy a house and again start with a small house/flat and move up as you remortgage.
@@SaintGerbilUKyou don't know everyone's circumstances. Not everyone has parents they can live with indefinitely or have a job that pays enough to be able to *save up*. You might as well just say have you tried having more money. Duh.
@@armed_but_blind2768thank you. These people act like everyone’s parents want them living with them or even have space for them. That only works for people who ain’t got rules in their household and can live off mum and dad.
@@armed_but_blind2768I couldn’t live with my parents so I had to lodge for a few years and then luckily rented a house with a friend for a couple of years. In that time I got an apprenticeship and worked my way through a career while saving all I could and I purchased my place last year. It is hard but it is possible to drag yourself into a better financial and housing situation. No financial help from my parents or living with them.
@@SaintGerbilUKure thing, Boomer. Seems like nobody but you has thought about that. What about someone like me? Who supports their parent?
"It's not because landlords are evil, greedy parasites"... then describes perfectly how landlords are evil, greedy parasites.
it's cause they'd lose sponsors if they openly opposed landlordism like that. when they know most of our generation share that view.
Perhaps if you sat down and saw how much banks are charging landlords you would understand where the REAL problem lies 😉
Meh! I am a landlord and I absolutely do not justify that description. Along with many other landlords, I see the relationship between my tenants and myself as symbiotic. I maintain my properties to a high standard, I want them to feel like home because I want good tenants to stay with me.
I didn't raise my rents for three years during lockdown or the first year of the the cost of living crisis - it didn't seem like an appropriate time to do so. I have done so only reluctantly this year, as the interest rate rises meant I had reached the point where I was actively losing money.
However, over the 4-year period, it is clear that my rents have not kept pace with inflation over that period. In real terms, my rents are lower now than they were 4 years ago. So, I reject your accusation that all landlords are evil, greedy parasites.
@@truth.speaker oh no the landlords free house is actually going to cost them something
@@truth.speaker more than 40 hours a week to pay off your landlords mortgage with a little bit on top rather than your own mortgage, witch would be cheaper then the rent your already paying, yeah, it's the banks that are the one and only bad guys here
"Landlords aren't evil greedy parasites, they're just not incentivized to improve their properties, because they can rent them even in a terrible condition unfit for human occupation!"
Yeah, that's a textbook definition of being a greedy parasite, mate.
“”Only”” incentive they have is a bit of goddamn human decency, but that is too much to ask for from our betters.
That’s the way the market works. If 35 people are willing to rent a property for the same price, then what happens is either the landlord raises the price to thin out the herd or offers a lower quality to any renter at the same price.
@@nunosantos485 If we went by how the market works, we would still be working in sweatshops making pennies. There are times when people have to fight against the market for a better life. That brings it's own problems but it still offers a counter balance to a system that couldn't give two s**ts about human labour.
@@nunosantos485 doing the bare minimum to extract the maximum while ignoring the externalities does not look like greed to you? What is allowed is a question of legality. What is considered greedy is a question of morality. One can capitalize the free market as much as they can while still being called greedy.
@@TimothyCHenderson the problem for landlords and everyone in the country is that the people who are voting and making laws know nothing about the economy and how to improve people’s lives. Taxes are too high, regulations are never ending, if you want to build or buy a house you need to comply with so many rules and pay a lot of taxes. Comparatively it’s really easy to be a renter. I’m both, I rent and own my own rental properties. I purposely choose to rent because it’s much easier than buying a house just to live in
I laughed out loud when I heard why landlords aren't terrible. 30 people per unit evidently means landlords can do whatever they wish and remain moral actors. Interesting lesson in ethics.
Yes, there are bad landlords, same as there are bad teachers, bad police officers, bad accountants, bad doctors, bad engineers, etc,etc.... But like all other roles of employment, not everyone is a bad landlord. There many good landlords, but you never hear about them, because some story about a bad landlord (true or not) makes for a better news piece.
Also not mentioned in the video above, is that landlords have had increased financial burdens placed on them in recent years, as well as legal requirements such as GDPR, changes to the EPC (energy performance) for lettings, and Private Landlord Licencing run by councils. Many landlords have found this burden to be unsustainable as a valid business model, and have since sold most or all of their properties. Those who remain have simply passed the excess cost onto the renters - remember, this a business not a charity! No profit, then there is no business...
However much people moan on about private landlords / renting in general, people need to understand that not everyone can, or wants to own their own home, and roughly 6 million people will be homeless if the private rental sector goes away. The government is short sighted, and only chasing low hanging fruit like landlords because of a general assumption by the population that landlords are all greedy bastards rolling in money, when it is actually often far from the truth.
i've never been able to settle in a house growing up, because landlords would always evict me and my mum one day, or increase the rent. and issues like mold and water leaks would never get fixed. now i'm 21 and still not able to obtain a stable household. great stuff Britain 👍
A person on minimum wage working 37.5 hours per week earns around £1400 per month and that is not including if they contribute to their private pensions or have student loans...
Using the '25% on rent' logic that equals the rent being £350 per month on Rent.
I challenge anyone to go out there and find a property that is £350pm for rent, if you have, congratulations you have hit the jackpot!
@@somethingfunny6867
LOL 😂
LET'S PUT THIS DEBATE TO REST. Let's play the 'traditional game' where if the Man loses...he's financially ruined, so let's hope he settles for the right one first time around, good fuckin luck 👍🏽 and if that's not enough, let's hope he avoids bad luck that involves paying out on cash. I'm sure we all had those 'fml' moments where misfortunes happens.
Okay let's break this down:-
£800pm on Rent (apprantly £1200pm is the average, but I can find some in Leeds for £800)
£116pm Band A Council Tax (cheapest)
£50pm Water Bill
£200pm - Gas/Electric (although some may say more)
£25pm Boardband
These are all base level at almost hit £1200pm - £600each
£700 left over each.
Now let's talk about Insurances and other necessities?
Car Insurance - £70pm
Mobile - £30pm
Food/Essentials - £150pm
Petrol or Bus travel:- £50pm
Union - £10pm
Leaves them with £290pm
So that's not even touching putting anything into savings and they for £290 each left. We aren't even talking 'entertainment' yet.
Now, annual bills:-
MOT/Car Repairs - £100 if lucky
Road tax - £150py
Contents Insurance - £75
TV License - £150py
Total - £40
£250pm left.
So with that £250pm, you want them to save money, buy stuff like clothes, appliances and maybe cheeky netflix for £12pm.
Sounds like an absolute shit show to me those numbers. I don't know about you, this is all just base coverage, we ain't going into the nitty gritty.
@@househussain786yes it's a grim situation for renters especially.
you don't pay student loans on minimum wage
Why would you have student loans and work for minimum wage. Da hell was the degree for?
@@labt8194 True, that passed my mind. But if you are on a Band 1 loan, you start paying around £22k py. Minimum wage is £10.42ph on a 37.5 pw contract that equals around £20.3k py. So it's not that far off tbh.
"It's not because landlords are evil greedy parasites, it's because with 35 people competing for a property, landlords do not have an incentive to make their properties appealing"
absolutely unreal sentence
Yeah it made no sense to me either. Doesn’t that make them…evil, greedy parasites?! Lost a bit a respect for TLDR with that one honestly.
It's also completely untrue. A landlord always has an incentive to make their property appealing, we need stable tenants who consider our property home and who will take care of the place. People renting a shit-hole for sky-high prices are hardly likely to do that.
@@paulbo9033 tony Blair?
Do you know a lot of landlords are benefits scroungers.
Rents are so phenomenal many working households rent payments are supplemented by housing benefits paid to these landlords.
If this extortion could be cut out the amount saved on housing benefits would be billions.
Recently they were mulling over reintroducing the 100% mortgage. Boris' telegraph mates wrote scathing articles on how this would ruin landlords, no consideration to the fact it could mean countless more people could buy their own homes.
Badly worded, buts its absolutely correct. The landlords we have are not being *uniquely* greedy, they are following basic good business sense. There is demand, so they can make the suppy more expensive. They aren't doing anything wrong here. That is how all business works.
The issue isn't actually the landlords,just expecting them to be randomly generous and giving is...stupid. Why them in particular and not the energy companies say?
No, the issue is the system that has ALLOWED people to profit off buying up homes to hoard and profit from. The system is now so out of balance, it needs a system fix, not randomly demanding nicer landlords. *Systemic reform.*
I'm 59 this year. I've always had poor physical and mental health. Not enough to get help, but enough to limit my work opportunities.
This is what my monthly income currently goes on:
Rent - 56% (the bottom 10% for my area)
Council tax - 11% (with reduction)
Electricity - 6% (I never have the heating or hot water on)
Water - 2%
food/sundries 8%
internet/phone 6%
medical - 2%
other (clothes, emergencies, etc) 2%-8%
I'd estimate given inflation I have a year or two before it becomes too costly for me to "live". I don't have a solution, beyond miraculous luck, at this stage of life. For an increasingly large "some people" this is the reality, and I'm so tired of the ignorant "you need to be willing to do..X" Does it not occur to those that we ARE doing "X"? This IS the best we can manage, and that's already more than we can do, and jumping off a bridge is looking like an improvement day by day?
Rent in my town is £70 per week for a bedsit
Where do you rent? London?
@@truth.speakerman chose to ignore the entire video but still argue against its points i see
@@truth.speaker So there's enough room for everyone in your miraculously affordable town is there? No. buffoon
Stop whining 'woe is me' and get a roommate, there your rent cost goes from 56% to 28%.
@@pikachuf0dder937 I'm asking where he's renting
If you live in the best part of town, saving will be difficult. If you buy the latest cars, fashion and tech, you won't have as much to save
Choices lead to consequences. So make good choices 😜
"Landlords retired"? As if your average landlord actually does any work on their properties.
Where i live now there is a real trend now for people in their 20s and 30s to move back home with their parents. Renting is becoming crazily unaffordable. There's no point living somewhere cool if you can never afford to go out or do anything.
The era of instant gratification is coming to an end. People are starting to realise that they will have to make shorter term sacrifices in order to enjoy longer term security and enjoyment.
I did this myself.... I saw renting as a total dead end and decided to move back in with the parents for a few years, live a frugal lifestyle and save like hell. Contrary to many, I actually loved spending so much time with my family, especially throughout covid....
Sure, I "missed out" on some things. But I also missed out on landlords, rising rents and paying any interest on a mortgage.
Short-term pain (not so much) for a lot of long-term gain. Thanks delayed gratification.
It's not a bad idea. Live at home for a year or two. Save a deposit and buy a house.
@@benghiskahn3673good for you… my parents are toxic so this is not an option for me or many others on the same boat
@@benghiskahn3673not an option for so many. Parents are dead, some people's parents don't have room or money to take their kids back in, some families have broken down.
@@sdrawkcabUK Mine aren't toxic but of course they moved out into the bloody sticks for their own benefit which of course will also increase nhs costs by 10x in the future etc. and instead of getting to see them in 1 hour travel it is 6. This is probably quite a common problem at scale, I've seen other people's parents do it too. Furthermore those generations are probably a spike in demand of those kinds of properties so there may be a huge equity loss (but that's up to 30 years away so irrelevant, nevermind).
As a kid, I called our landlord "Uncle Bert" and he never forgot my birthday. If ever there was a problem he's be there straight away to fix it and was very generous. He inherited the house outright, didn't regard being a landlord as a job description and actually had a real job too. Today, your landlord is either a professional usurer, mortgaged to the hilt as he tries to expand his fiefdom, or else he is a faceless investor, playing the markets and hidden behind a huge property management agency. Ordinary old-school landlords are virtually nonexistent and forced out of the market by all the bureaucratic red-tape and tax liabilities. Letting a house you don't own outright should be a CRIME, foreign investment in our property market a CRIME, and letting agency dishonesty a CRIME. In the shorter term, we need a Fair Rent Comission NOW and the repeal of frivolous ideological government rules - like the stupid new EPC requirements which simply force up rents even higher.
Landlords who use third parties to manage properties also get on my nerves. Nowadays, the landlord doesnt even have to look a family of four with children in the eye as they double their rent and evict them from their home if they dispute it! Now thats efficiency!
Most of the time the agencies are the evil gits. Encouraging the rent rises ect.
Heck yeah, just pay an agency to deal with it all whilst still making profit. How else could our poor landlords afford the mortgage rates increase!
Most third parties except for the city generally don't keep tabs on the tenants, so usually things end up broken, damaged or stolen. Third party always put their hands up and say they're not responsible as the landlord ultimately gave the go ahead. The second tenants are in, they do most things in their power to prevent getting them out or compelling you to let them stay. From crocodile tears to outright aggression, and then threats of going to the law. There are costs on both sides
@ArCher11-iq9co they don't keep tabs because they don't care. The properties aren't looked after or managed to begin with. The conditions barely means anything as they increase the prices regardless - remember that people have to live somewhere so someone will have to pay for it. So why would private owners spend resources maintaining a property and worrying about the tenants if they can simply increase regardless. Obviously there'll be exceptions, but let's be real, this is the case in the vast majority of rental properties.
@@GabrielRM Let's be real no one likes to step on eggshells in what they should be calling their home, the very nature of how letting agencies operate don't give that impression at all. Landlords are not telling the agencies to price their property out of a tenant, think about it no one would want to rent and rightly so if the agencies didn't ramp up the rent and demand all sorts of "administrative costs", in fact agencies have lawyers close by ready to justify all these expenses. There is undue pressure on the landlord as there is the tenant. Anything requiring tenant being addressed further usually the landlord has to pay. Its a rigged game with the agencies playing both sides and pocketing a bit percentage than the landlord.
I'm amazed people are able to pay less than 50% on rent
It's very doable if you have a remote job and live outside of the South of England
@@zeztro requires being outside of most cities too. Unless of course you are splitting rent with anyone, then it's relatively easy to do
This is the whole reason I moved to North Wales it's about the only place you can still do it (if you get one of the few good jobs god this area is poor in general)
I'd love to have my rent at 25%, I'd actually be able to afford things!
My parents are going back to France because they can’t afford the remortgage, I’ve got until October to decide if I’m going to waste all my income in rent for the rest of my life, or go to my ancestral country and buy a 5 bedroom detached within 20 minutes of a big city for 50k next year 🤓😂. What a shambles we live in here
Move to France, it's a no brainer.
Housing costs in England are being driven by excessive demand which is almost entirely a result of mass uncontrolled immigration. More than 5,0000,0000 from the EU alone....600,000+ net migration in 2022 alone mainly from outside the EU all need somewhere to live. From 2024 all construction of new home will be as a result of immigration
I’m not surprised a lot of young people leave this country because they don’t see a future here
Never used to be blame Labour mass migration
More young people come to this country than leave pal, by an order of magnitude.
and it will get worse. as of next year brits can move to australia for up to 3 years and not meet strict work requirements.
The housing crisis is practically a global issue at this stage. I grew up in Australia, buying a property is arguably more unattainable. But it is true the UK is a bit of a dumpster fire right now
@@missm10Explain?
As many renters can agree, it is so very difficult to pay off my landlords mortgage
As a renter, where exactly would you expect to be living without landlords?
@@thedubwhisperer2157You’re just deflecting at this point 😂 “renters shouldn’t foot the bill for a landlord’s bad investment in a home. If things go wrong for them, they took the risk” is very different to “let’s just blow up all the rented houses in the UK so there are no renters”
@@thedubwhisperer2157 In a house lol why does some rando need to own it. Why can I not pay of the mortgage with the money I payed as rent? Why can't I rent from the state directly? Why does someone who does nothing but own and contribute nothing to society need to profit from me living somewhere?
If landlords didn’t exist then there’d be no middleman to take a cut. Quite a few of our EU neighbours use massive social housing programs and reaps a number of benefits.
@@anoukk_ Sounds like you've a chip on your shoulder. Even if your landlord 'does nothing but own' he/she still contributes to society, that's what taxes are for. That aside, seems rather immature to paint all landlords with the same brush.
"This is not necessarily because landlords are evil, greedy parasites."
Then
*Describes landlords being evil, greedy parasites.*
Yep, I'm one of these statistics... been renting my flat for 9 years, luckily with no rises, but luck ran out this year and I was looking at a bump of £200 per month - about 20% more. Luckily my aunt still owns my childhood three-bed home so I'm moving my family in there next month. Moving back home wasn't something I saw myself doing at 40 but I'm in a better position than most in the same situation.
Rental is always worse then housing. Lets be real nobody wants to rent if they could own, meaning renters are way more vulnerable
I'd be alright with renting longer if there was better competition so the quality of renting was better without having to pay loads for niche top rate rents for actual usable fixtures and fittings that don't break when you clean them, a proper working boiler, MIXER TAPS, and white goods that aren't utter trash etc.
Renting isn't always worse than buying. It will cost more overall to buy, sell, and buy again in a short period of time (like a two or three year period common for fixed term contract positions) compared to just finding a new rental.
@@dc6807 while I agree we even used to have 105% mortgages, it won't happen unless the interest rate goes up a bit more and will only appear on the way back down.
Although I've no idea how long that will be.
Not true at all, look into the housing market in Austria and Germany. Owning has many cons too
@@dc6807 oh agree probably longer
Home owners and politics dont care about youth situation. This lead to lower birth rate, they dont try fix it with more house accessibility but throught imigration. There are many foreigners which living like 10 in small house. This is disgusting!
Exactly right, slums galore; but not being reported in mainstream media.
Let's not blame the immigrants for living in bad conditions. They are probably getting worse wages than natives and can afford even less
And when they realise the birth rate is too low (which it will be dangerously low by then), they will come out asking why and blaming women for not having babies…
@@b.6826 Mindset plays a huge part though and people dont talk about it - shit conditions seldom stops religious folk having kids
Here in Cornwall finding a rental property before the pandemic was hard and expensive (relative to earnings, which are generally quite low here). During and after the pandemic quite a lot of rental properties were converted to air b n bs which can earn significantly more. The pool of rental homes is significantly smaller now and significantly more expensive. Our earnings have not increased. Everything is more expensive. My rent is 42% of my earnings.
My former landlord who has a mortgage-free property increased rent from £750 to £980/month in the space of two years, properties in my local area are typically up at around the £900 - £1400/month (3 bed semi-detached up to 4 bed detached), when just before COVID the equivalent size properties would have been £600 - £800/month, I'm lucky enough to own a house now but for those renting with this going on, I can only imagine the pain, it's ridiculous.
I am sure you did scarified a lots to save up for your down payment for your house. I did the same but not many renters can understand this.
@@edli323How the hell are you supposed to save a decent deposit on like £25k a year as many minimum wage workers have to? You can’t budget your way out of poverty.
@@alexyordanov7324you could rent a room for a lot less??? If you are on min wage go live in stoke on trent where a house rents for 450 a month. Minimum wage is the same where every you are.
we are working to support people like you. We are trying to make renting rewarding!
personally i'm planning to leave the UK. no chance of owning a home here and while i managed to get council housing, i almost died in the process as no private landlord would rent to me. i advise other young people to do the same. we have no future here.
Where else can you go if you’ve only lived here and not to mention live somewhere that won’t ostracise you for not being “white”?
Yeah when I was self employed earning the most I ever had, I struggled a lot to rent and had to be technically homeless for a year while trying to run a business, like I had people asking me to fly to black tie events but I couldn't store my stuff anywhere to even do that. You don't even get a response after agencies ask for your accounts or suggest you'll need a credit check because it's always easier to rent to someone else. When I did finally get a place and a guarantor, they began the checks and then instantly called and laughed and said yeah no need... go figure. There was another time before where my advisor knew landlords and would help out but he got squished by a truck, so I might just be unlucky.
Come to the EU
I might have to do the same. We are in that situation right now. No one will rent to us, even though we are often offering more than asking and 6 months upfront. We've been looking for 2 and a half months, lost count of how many viewings we've been to and how many offers we've made. At this point, our possessions are in storage and we're crashing at a friend's place for 2 weeks, technically homeless. The council isn't in a hurry to do anything, we contacted them nearly a month ago and our first housing options appointment is next week.
Remember the cause of excessive demand in the housing market is from population growth which is more than 80% a result from uncontrolled immigration. We are building more than enough homes for the indigenous but never enough for Immigrants and their children who from 2024 will account for all population growth
*ABSOLUTELY STUNNED* how Truss & Kwartang can walk the streets being safe from harm. During Kwartang & Liz Truss's term, the mini-budget resulted in a depreciation of Pound Sterling, an expected increase in interest rates affecting future mortgage rates, and financial instability. Currency fluctuates, but the enormous spook in the market during their period is still being felt today. The interest rates rose exponentially after the mini-budget & ain't recovered since. The verm1n were the clear catalyst. Martin Lewis said somet similar & I rate he knows his onions.
I hope all the (none OxBridge, Windsor, Kensington, Mayfair silver spoon licking) - hard working Brit's who make this country great, all the best during these difficult times. Before we know it the Tories will be dust, rear view mirror legacy stuff - & order of equilibrium will be restored. For now, let us think about how these Torie white collar gangsters get ''aligned'.''
They're too busy on blaming dinghies and EU nationals.
Just let me know where they take their evening stroll.
It should also be pointed out that politicians often have substantial wealth invested into property so its in their personal interests to keep prices high
Indeed. You think these jokers go into politics to serve the people?. They do it to serve themselves.
Sometimes, reaching to be so completely "balanced" leads to a lack of objectivity, this crisis is driven by greed and unjustifiable policy decisions and failures. This should have been addressed ages ago.
@@somethingfunny6867 no, everything isn't because immigration, immigration didn't implement austerity, didn't decide to cut everything, underfund the NHS or privatise utilities, it didn't set stagnating wages, didn't sell off all social housing the fail to build anymore, didn't greenlight luxury flats over affordable housing, didn't allow rich foreigners launder money through land and property, but people voting for idiots lying about immigration visited a lot of that and Brexit on us and they continue to avoid taking responsibility for that by still reaching for the immigration scapegoat.
Exactly why I (and many people I know) are buying this year (been saving for years! The recent drop in prices made a one bed apartment in a commuter town BARELY affordable for me). Even with 5% interest rate, it still worked out cheaper having my whole own place as a mortgage than renting the equivalent, let that sink in!!! And here's the kicker, mortgage rates can DROP, once rents are raised to a certain point they NEVER come back down! After 2 recent rent hikes I thought I have to act now by any means necessary before I'm priced out for life!!!
Bear in mind I'm a fully grown woman working as a Software Engineer and these are my struggles, let alone someone who works a zero hour contract job (which I barely scraped by on previously)!!! DONE living in house shares with a constant revolving door of who knows who and dealing with crazy prices and ridiculous estage agencies!!!
Theres also a deliberate lack of supply from landlords using price fixing on websites like realpage where people would rather not rent out a place so that they dont reduce the overall rent price of an area.
Its almost asthough greed and the commodification of a basic necessity is a bad thing 😮. The one thing i hate most is thay landlords call it an investment but if their "investment" starts losing money they throw there toys out of the pram because "well i have to make extra money while im paying off my asset...thats obviously before they sell their asset for more than they bought it for.
Welcome to late stage capitalism where "fuck you ive got mine" is the motto of the day.
regulations stifle business... yea thats exactly the point why should you have a leg up on your competition...
wanna make a buck... make that buck the same way as everyone else...
literally 90% of these landlords are leveraged beyond their own means... so instead of selling and clearing their balance sheet they will just raise rents... because the government lets them... cuz they are the gov
Someone should look into those sites and see if the massive worldwide rent increases correlate with large scale collusion.
If you owned a place you can't let it sit empty. Taxes, maintenance, insurance costs AS WELL AS THE MORTGAGE mean you can't allow a place to sit empty
😅😊
@truth.speaker yah I read this and as a landlord, it sounds insane. If another landlord came to me and asked me to keep my property off the market, to keep rent high, and help THEM make more money, I'd laugh in there face. I'm not giving up on making money so THEY can get rich 😂
I recently just moved to a new flat. My old flat has a hole in the ceiling which the landlord did sod all about.
Speaking to my friends and I’ve realised that this problem of crappy landlords if shockingly common.
I’m hoping my new place will be better but I know many people who do not have the money to move. The government needs to fix this.
Who are these people spending only 25% of income on rent? I can't find anywhere under 40% (outside of London) if I want to live in a city.
Maybe it's before tax. And a number from the gov spin doctors
Im making 3G a month, Im living out a van atm. I'm using a PO box as my address. Tbh im spending about £1G each month on bills and living, leaving me with £1500 to either save or spend on luxuries.
I can't believe im making more than 50% of the population, whilst at the same time feeling like im at the bottom of society
@@somethingfunny6867 Yeh thats the plan man, just a shame the shit our generation has to do just to make a start in life
@@somethingfunny6867 My parents didn't, my dad was on his feet at 19, he had a factory job making minimum wage at the time but was still able to buy a small house. I'm on almost double minimum wage yet still have to wait till i'm 24 to buy a house. I'm lucky apparently, there's people out there who will probably never buy a house.
It's really depressing, because I'd like to return home to the UK, but the way that things are going, there's no way that I can do that. I'm one of the people who is part of generation rent, but is older is outside the age bracket. The assumption is then "oh, I could have bought a house when it was still cheap" I couldn't because I was renting. Renting and paying so much of my salary meant that saving a deposit was almost impossible, it did take me about 15 years to get enough saved, and I wasn't living in London, rather at the edges of the home counties. At the moment, I live in Germany, and there's some kind of rent control where I live. The landlord isn't allowed to increase the rent for the first 3 years of the contract, and then after that isn't allowed to increase it more than 10%. The safety for the landlord is then the notice period you have to give to move out is then way longer. Why aren't any of the parties considering doing that ? Oh, right, because as you said, it's not in their interests to do that, and being the minority of a minority is just irrelevant.
The solution is ending mass immigration as that is the driver of housing costs...........to think otherwise is delusional. The housing market is driven by demand which is excessive. 80%+ population growth this century is from immigration, from 2024 all population growth is from immigration
A few years back when i rented , They increased my rent by £25 pw in the first month.
I hate what England has become
we need to get back to 1970s levels of social housing. So that those people least able to pay are insulated from the volatile housing market and no one is forced into homelessness because they cant afford unaffordable homes. The government could take advantage of falling house prices by buying up cheap homes as they come onto the market as private landlords try to sell. Gaining the UK government assets at low prices and guaranteeing struggling brits a roof over their heads
Then we should've voted for Corbyn.
Tories will never do what they did in London, when they built their own social housing which is the barbican estate. That was a once in life time situation where all Tories agreed with that one, since then I've never seen Tories agree on anything when it comes to social housing now. They prefer to listen NIMBYs.
@@jasonhaven7170 even then...Corbyn would struggle, because Tories would take him to court
@@HShango LOL
@@HShango Then why do you keep voting for them?
1:55 your stat here is presented incorrectly. The 65% is the number of _households_ that are owner occupied, not the proportion of people who own. This is a common misinterpretation of the ONS figures. Most young people who rent, especially in big cities, do so with other renters, and so are significantly underrepresented in the stats for households. The ONS seems reluctant to gather and publish stats on the proportions of people renting.
Landlords don’t just want you to pay their mortgage.
They also expect you to pay for their holiday and day to day living expenses!!
They should not be able to charge more than 10% of the cost of the monthly mortgage payment.
This gives them a nice 10% PROFIT on their property.
Plus the increased value of the house when they sell!
This would be fair for everyone 😊
On those terms, I seriously doubt anyone would rent out property at all. If I borrow 300K (at present interest rates), the interest alone if I pay 5% is 1,250 GBP per month in the first year.
If my monthly mortgage payment is 1,750 GBP (for a 25 year repayment mortgage) your terms suggest capping rent at 175 GBP per month.
So you want me to borrow money at 5% and then effectively give the benefit of that loan to another party at a cost of just 0.70%, which means I pay 4.30% net for a loan I can´t in any way benefit from. On top of that, you want me to also be responsible for insurance and bear the cost of wear and tear. Oh, and if the tenant stops paying the rent, that´s my cost as well?
Let me ask you, if you had the means of being the home owner in this scenario, would YOU take that deal?
@@danielskelton6699ou conveniently forgot to mention the increase in value of the property over that time period, which far outpaced any inflation historically. Also, missed the fact that you get to own an ASSET, for which the person paying for, owns zero percent. Name any other asset that someone else pays for?
And upkeep of the building. Ornyou pay to replace the roof.
@@Username18981 Any modern property requires little upkeep and roofs last 25 years plus. If the property is an old one, that is reflected in the price of the property so the landlord becomes a landlord on the cheap. Unless the landlord is themselves a carpenter, they're providing nothing of value that a mortgage payer couldn't deal with themselves.
Lets face it, if a landloard pays 10K for a new roof, the tenant(s) pay over time so nothing is gained on their behalf here. Please present me with a scenario where a landlord absorbs 100% of the cost next time.
What if their associated costs are more than 10% of the monthly mortgage payments? Maintenance, estate agents fees, legal fees, are all costs landlords have to pay. Could easily end up with the max rent they can charge making them a loss each month, meaning they'll just sell off and rent supply worsens further. The only actual solution to both the mortgage and rental crises is more long-term house building. Anything else is dancing round the problem.
I'm so glad that I bought my house without a mortgage. Back when I was renting, I couldn't save anything because after paying for food, rent and bills there would be nothing left. That was in a shared house too. If I didn't have my house I would probably be out on the streets as there is no way I would have been able to pay that 15 - 25% more, especially since basic wages are nowhere near to keeping up with inflation. If you are wondering how I got my house, the answer is the same way that many people have as their only hope to ever buying their own home - inheritance.
As a landlord - the biggest increase in costs is the change in tax regulations on interest charges. I don't actually think the interest rate changes would have had the impact on rents if the tax changes were not present. The aim of any landlord is to get a set amount of return for an asset (e.g. I operate making a 2-4% return on investment).
Reality is, most landlords see rental as an investment. If the government increases taxation and interest charges on that investment rents go up.
Previously:
Rent: £1,000
Mortgage: £600
Tax (40% on £400) profit: £160
Profit (before expenses (£1000-600-140): £240.
New tax rules:
Rent:£1000
Mortage: £600
Tax (40% on £1000): £400
Profit (before expenses - £1000-600-400):£0
The big one for me, as the landlord of two properties with mortgages, is the change to the tax system for private landlords. Whilst I could wear the massive increase in the mortgage rate I cannot cope with the tax on gross income - it’s this that pushes me into a loss and means I have to sell.
That's exactly why landlords are referred to as evil, greedy pasasites: squeezing renters as much as the law allows.
And then lobbying to not give renters decent rights. Seems horrible enough to me.
How did you guys at TL;DR imagine an evil, greedy parasite?
@@somethingfunny6867immigrants happen under every possible system because there aren't enough citizens to cover all the jobs that need doing (strawberries don't pick themselves, carehomes don't run themselves etc) - literally every other country manages to have decent rent without having to change immigration policy.
Immigrants aren't the reason your rent is high, greedy landlords and incompetent government ignoring the greed are why. Building housing would fix most of these problems, but that needs a competent government
@@somethingfunny6867We are objectively taking in too many immigrants. Absolutely everyone should agree at this point.
Everyone blames landlords for pushing up house prices. Then when all the landlords sell up, they are blamed for pushing up rental prices.
It never ceases to amaze me how people who do not take responsibility for managing their financial affairs properly in order to advance their status in life always look to blame someone else - such as those hoping to buy their own home, but splash out on unnecessary things such as going out for drinks every other Friday, always blame the ‘evil’ landlord for making a home available for them to rent!
@@ruhaluddin say you were born with a silver spoon in your mouth without saying it
“Landlords aren’t parasites” - Since July 2019, me and my partner have paid £50,000 in rent together. After 5 more years, the average time to save according to your research, we would have paid a total of £112,500, not accounting for yearly increases which would make it even more. We could be half way to owning a modest house with that, but instead we’ll basically be starting a new mortgage when I’m then 34. Landlords know they can drain renters dry because the renting landscape isn’t going to change any time soon. Parasitic behaviour.
How much would you have paid on mortgage interest if you had owned your home with a mortgage? Probably not a vast difference from what you paid in rent I imagine, unless you’re getting a really bad deal.
Most small-time landlords make a fairly small profit considering the amount of risk they take on. If being a landlord was so good then everyone would be doing it. Why don’t you go out and get a buy-to-let mortgage yourself right now if it’s so easy to make money?
It’s much easier to just stick your money in the stock market than to be a landlord and have to worry about tenants damaging your property or failing to pay rent, or property prices falling
@@paul_e123 “everyone would be doing it”. Did you miss the point where people can’t save deposits to buy a house to live in, let alone a second to rent because rent is so high?
Just take a second to google how much money landlords make. They make 5-8%. This is not much of a return. They could get that just by leaving their money in a savings account right now. Landlords are not the problem. High house prices are the problem. Don’t blame landlords, blame the system
And this idiotic comment just show its your mentality that thwarts you buying a property. I bought mine whilst earning £19,500 a year 9 years ago. Doing a job that killed my life long best mate so i little dangerous kind of job one might say. I now own 4 properties, soon to be 5. Born an bred on a council estate so not rich and not from a rich background. The tenant in my house earns more money a year than I do so could buy a house like mine but chooses not to. Same with one of my flats. Another one of my flats has just cost me £5800 after receiving an email from the free holder with my share of the cost for cladding.. My tenant doesn't need to pay that but I do. The flat next door with 2 bedrooms is now back on the rental market because it wouldn't sell. A 2 bedroom flat for 75K. But nobody wanted to buy it because they didn't want to be liable for 33% of the leaseholder burden that I am as the landlord. I work more hours in the 5 months I work abroad in 1 year than the average full time worker does all year. And I'm a parasite
@@DP-co8rogod this comment top to bottom reeks of Tory.
"And I'm a parasite".
Yes. Glad we're in agreement
They should be a law to stop landlords from renting out houses that aren't mortgage free. There are huge companies that keep buying up houses block by block and then rent them out with huge profits .The more houses they have in their potfolio , the more loans they get from banks. So they buy up more houses...ad infinitum.
Or you could just simply ban companies from owning residential properties
@@royalbiscuits8442or maybe restrict it or make it just all state owned
@@julianm6360 making it state owned is a horrific idea. Leads to the managerial class taking away any autonomy you may have.
I am leaving the UK because my rent has gone so high that my salary as a Lecturer is not enough. Got a job in some country where my salary will be great but rent will be only £250, half of which will be funded by my employer. So only £125 a month rent and great savings! Now compare that to £1750 that I pay in a zone 4 accommodation in Barking (almost outside London).
Yep exactly. I think the wider public still picture it as all students and people who are okay part time who are renting, and are of course aware of struggles of disadvantaged people I don't want to diminish that. But the price and poor conditions of renting are affecting professionals and entrepreneurs really profoundly on a wider scale now too and it really stunts wealth growth from within, job opportunities (public transport also doesn't run late enough to compensate for rent inflation distances so late shifts have no way to commute), and public servies (many nurses and new teachers living in HMOs over an hour commute from work!).
London isn't the UK. You already live in another country.
@@0w784g Something is similar is happening to my friend in Manchester (though not as bad as London). I'll help him leave the UK too. He works for a government firm that creates security related software to save data of British people!!
Which country did you move to if you don’t mind me asking?
@@theromanticlife2907 UAE....
4:13 landlords "have little incentive to make there homes more appealing" my brother in christ, they have little incentive to make them habitable in many cases
@@aftokratory sorry
Can you split "owner occupier" into "mortgaged" and "full ownership"? Those two categories seem very different to me.
The other major issue is lack of affordable housing, also new housing most of it is hugely overpriced and is only ending up in the hands of “investors “ that’ll rip off potential tenants, another issue is that 2 nd homeowners with a second property sat 9months of the year unused.
Rental crisis and housing crisis are connected. As cost of buying a new house is rising, rents are rising, that is a logicaka behaviour from the landlors. And as houses are less affordable, more people want to rent and the rents are rising more. It is a vicious circle. We terribly need to adress the housing crisis everywhere in the world. It is a crisis that destroys the middle class and it is devastating for the lower class. And it is a crisis that criples a whole generation.
Renters, young people, the poor, etc are less likely to vote so they get ignored and end up progressively worse off. If only there was something they could do to get politicians to listen to them...
I've voted all my life and nothing has changed because of our 2 party system, as someone who treasures the right to vote it's even got me feeling apathetic, really what difference would it make when the boomers and homeowners outnumber us demographically?
@@MoniiChanTheUnicorn I guess that's the effect of persistent disenfranchisement. I know that it's easy for me to say this (I live in a country with a decent electoral system) but if you treasure the right to vote the next step is to double down and agitate for people in a similar situation to you to vote as well. Elections sometimes come down to small numbers and a change in the demographics that make up the "likely voter" will grab the attention of pollsters.
A good example of that would be the "red wave" that never was in the USA. Because of a horrific federal Supreme Court a whole lot of people who otherwise wouldn't have voted were motivated to and an expected windfall of seats for the Republicans never eventuated, and those votes ended up mattering in preventing the worst case for them.
Textbook supply and demand economics. Landlords were forced out of the market, now there's a lack of competition, with more prospective customers than ever. People wanted less landlords, this is the result.
Landlords retiring does not affect supply. They flat is still there and still occupied. Either there is a new landlord for that property or the flat changed from rental to owner-occupied, which means one tenant became a home owner.
There's a lot of abandoned houses which need fixing up, but not a lot of people have the money to get into that and sort it. The government should buy back these old houses, do them up with a team and sell them on.
A big factor for rising prices is letting agents incentivised for landlords increasing the rent, so they do everything they can to get those prices higher
They really need to implement some kind of rent control system tied to the average wage in a city.
It's the only way to keep the market realistic for the area & if thelandlord have over extended themselves, seeking to pass the cost on then they'll have to sell up, making most houses available for sale.
Then you just won't have anywhere to rent at all
This sounds like a good idea but as we’ve seen rent control in America it’s only fixing one problem in the short term and creates a bigger problem in the long term.
What ends up happening is those rent controlled properties end up in terrible condition over the years when the rising repair costs become unaffordable due to the rent being capped.
"making most houses available for sale"
Which people will not be able to afford to buy because of the current cost of mortgages.
@@hockysa It's not an overnight solution but stopping the rent increasing beyond what it is VS the average wage will help reduce the house price increase.
Fewer people would potentially look to get into renting properties, more are available for sale. Lower rents VS wages mean shorter times to save a deposit.
The main issue would be people would potentially be living in properties with negative equity but this would mean they'd have to stay in thr property longer to mean the houses sell for what they paid & they can upgrade (if they want to) later.
@@Lioris13 so with what you're proposing to solve the issue of rent increasing by tying it to the average wage is only limiting one section of the market and expecting the rest of the moving parts involved in the market to compensate. Yes agreed it would make purchasing rental property less lucrative but for what you're suggesting here this would need a market crash which is not only bad for middle class family landlords trying to make good financial decisions and raise their quality of life it's going to hurt renters with less supply and be a huge hit to the economy which is always bad for everyone.
Not to mention house prices aren't going to magically drop to a price where the average person can purchase their home this just creates an opening for the ultra rich to buy low and scoop up a lot of properties while everything is cheap then sit on it for the years to come.
Throughout history falsely controlling market prices has always created unforeseen consequences. Examples would be all the attempts at the various forms of socialism.
I'm a student in Edinburgh, and due to partially a good academic record and mostly luck I get a lot of funding. Yet even with more money than your average home student I can't find term time accomodation - nothing to do with the price. It's just not there? Any house is snapped up without a viewing way before I even get the notification.
I am not sure I follow how 140k landlords retiring removed supply. If these properties were sold, someone bought them. What are new owners doing with these properties?
I agree that something needs to be done to ease the pressure on renters.
One point that I don’t think is covered here (understandable as it focuses on renters), is that the core voting base of U.K. home owning constituents won’t be directly affected if house prices shrink.
Yes the value of their properties will go down but if they have little to no mortgage on them (as the majority of those in their 60s and up have). It’s those who have got in the property ladder recently, with large loan to value mortgages who will be hit the hardest.
Edit: discovered that majority of under 65s in fact do not own their own home. Corrected from 50s
Little to no mortgage for majority people of 50yo’s ??
Very doubtful, a lot Gen-X we’re still trying to get into the home owners market at 46 years of age.
Considering most people aren’t able to purchase till at least 33 at best majority of those people are 13years into a 33 year mortgage, assuming they haven’t refinanced or drawn from the loan.
@@hockysa you say ‘a lot’ but the average age for buying a home back in the early 2000s (when 50 year olds were in their early 30s) was 31.
I understand not everyone is the same but the average person in that age bracket is around 20 years into any mortgage they would have taken out, coupled with the fact that houses in (let’s say SE England as those are usually the most expensive regardless of time period) was £181k compare to £453k now. I’m right in saying, on average, those in their 50s and older will have much less debt than someone in their 30s say… if they have any debt at all.
@@pratosaurusrex1128 less debt compared to current 30yo's of course, I'm not disputing that. Little to no mortgage for 50 group less so. 60+ I would agree since theoretically people would have paid off 30 year mortgages with the reality being the average person is not as discipline.
@@hockysa sorry I also forgot to mention… if you are in your 50s and got on the market recently then of course you absolutely have the same pressures as someone in their 30s. I was just speaking to averages in the original post.
@@pratosaurusrex1128 that's a good point to mention as majority of those in their 50's don't own their homes in the UK. It's less than 30% of that age group. Majority are still stuck renting.
A better question would be, is anything not in crisis in UK?
Bankers' bonuses.
Our roads are still among the safest in the world, top 5. I think that's it? xD
They don't have a food overflow crisis.
Better than permanent rioting in France I would say.
"Rent controls don't have a great track record"....that is an uncharacteristically unfounded and oversimplified statement from TLDR. Rent Caps certainly have a mixed history, but with regards to having no form of Rent Control, the UK is the exception in Western Europe. The narrative that Rent Controls don't work is far to often perpetuated in the media with no in depth discussion of the pros and cons and real life comparisons of different rent controlled markets vs UK. I know this is intended as a news summarising channel but such myth perpetuating is what helps ensure no real (amd much needed) discussion is had in this country to rectify the rental and wider housing market.
1:50 “65% of brits own their own home” is an incredibly inaccurate misinterpretation of the data collected by the housing survey conducted by the department for levelling up.
According the the housing survey, 65 ish percent of HOUSEHOLDS are home owning. That’s 65% of the roughly 25 million residential properties. If you’re a young person, like myself, living with parents bc you can’t afford rent and if your parents own the family home you’re counted in that homeowning statistic.
65% of the 67 odd million people living in the UK would give a figure of 43 million homeowners which is more homeowners than there are houses in the UK. If only that were the case.
If you move in with a partner and they have a mortgage you’re also classed as being in homeowning household despite not having any equity (unless you get married or otherwise join the mortgage). Similarly, it’s silly to assume that children of homeowners will become homeowners once they inherit because that would probably require them to live with their parents until they’re Middle aged and then live with all their siblings once the parents pass. I have no idea why they didn’t collect data on actual individuals alongside households there’s so many holes.
Im frankly disappointed; I expect better quality and nuance from TLDR. The blanket statement on rent controls was unfounded, and they didn’t do a good job demonstrating how in any capacity landlords aren’t greedy monsters for maintaining bare minimum living conditions for renters, who are human beings with families and dreams, just because they can. Please do better.
Building more houses isn’t the only solution we could also bring down the size of the population by having net-zero migration.
Well you may soon have it, as the current immigration point system incentivizes hiring educated people to high-paying positions, from abroad, leaving the poor-paying manual labor jobs for the Brits to do. More and more young educated people may decide to go elsewhere, increasing emigration.
@@Woffenhorst If Britain doesn't get those educated people, they will go elsewhere, making Britain less competitive.
Population collapse always spells trouble for a nation's economy. The UK has had very low birthrates for decades, and instead of providing incentives to encourage people to start families, the government uses the cheaper short-term solution that is immigration.
Just. Sodding. Depressing. Getting a house will be my 50th birthday present if I'm lucky at this rate. Sod this awful country
Glad I discovered you guys, damn, news I don’t feel like I see anywhere else; or at least not bite size
This has more to do with salaries that haven't moved in 10+ years. Inflation has destroyed people's ability to save. Add in the fact that house prices are deliberately fake and you have a situation where the AVERAGE WAGE is nowhere the price of the AVERAGE HOUSE.
I'd normally blame Brexit 🤭 but this is a problem in mainland Europe too. I live in the Netherlands (as a home-owner, luckily) and rents here are through the roof as well. This affects a growing part of the population, namely those who earn too much to qualify for social housing, but earn too little to qualify for a mortgage. Renting a house on the free market: 1500 euro? Apartment: 1200? Single student rooms in the bigger cities: 800 euro? For context: that's what I pay for my house mortgage. But for younger starters it's really difficult to get a mortgage now. Even on two incomes.
Affordable housing is absolutely an issue all across Europe, but I'd argue that the UK has it exceptionally bad.
Not only are rents absurdly high, the UK is also particularly lacking in terms of renter's rights AND the housing is of shockingly poor quality (even with newer builds). I remember being absolutely floored by how low the housing standards in the UK were compared to places like Germany or the Scandinavian countries.
@@Sylarah15Well duh, Scandinavia and Germany are the absolute best... try coming to Southern Europe
Anglo countries are getting themselves into this crisis, NIMBY's are destroying the young generation, what was once a meritocracy is now becoming a inheritocracy. you either gain a property from family and become relatively rich, or you stay poor.
It's generally down to Alternative assets funds buying up housing. Thus to max profit, buying houses to control the housing market and increasing profits.
It is a problem everywhere in the world mate. OK you might say it's cheap in Nicaragua or another chronically unsafe country, but who's to know whether it's affordable for the locals earning their living in the local currency? The basic problem is that there isn't room on this planet to house 8/9/10 billion people in decent conditions and that there's bound to be heaps of folks who will lose out. And even if governments were to undertake massive housing projects it would be at the detriment of the environment, solving a problem to create a new one.
Anything that effects the poor is always on a base line worse then something that effects the rich.
It’s our duty to take on hardship rather then those on or close to the poverty line! Never vote in a government that disagrees with that sentiment!
I'm reminded of something I think I saw with housing in Australia here on RUclips. I'm not sure what the event was, but the speaker asked the room if they agreed something needed to be done about the cost of affording a house, and everyone raised their hand. He then asked if the current homeowners were willing to accept less than they paid on their house when selling it (or maybe it was asked if they'd allow multi-family homes/buildings built in their area, which may lower the property value) and nobody raised their hand. Then everyone looked at each other and gave a nervous giggle. I think that sums up the issue nicely right there.
@@dc6807because, providing you are wealthier your life financially speaking is easier
@@dc6807 Because of your empathy and compassion, if you don't have those then there is nothing to be said mate.
@@dc6807Because it’s the right thing to do? Because we want the lives of those who come after us to be better than those we lead? Where would we be with now with your sentiment? The reason you’re paying that ridiculous mortgage or have had to suffer in some way is exactly because of your sentiment, because someone before you said “I’m alright Jack” and pulled the ladder up. With your ideals a downward spiral will form, where every generation will be worse off than the previous one because it’s unfair that we should have to suffer while those who come after us have it better. How stupid is that? If you take this to its logical conclusion we should be banging rocks on each others’ heads in 500 years time. Why not, instead, contribute to a society we can be proud of, where people don’t have to worry about rent because we did our duty in ensuring them a good quality of life?
I’m glad TL;DR actually addressed the underlying issue, false “solution” and offered a real solution but why it’s not happening. Much better than sloganeering with the world’s smallest violin in hand.
1700 minimum for a one-bedder in London! All I’m saying!
And minimum 1 grand for a room! Mentalllll
Now you turn 40 years old and you can celebrate this with your flatmates AS YOU ARE STILL SHARING!
You left out the key fact that landlords can no longer add loan interest as an expense.
It will take 15 years of high volume house building to solve the issue.
Yes and no, Landlords cant - but Ltd companies can. most landlords or serious ones now buy properties in ltd co names now. But yes House building needs to be the solution and I mean real house building not the kind that happens at the moment with cheap homes being space inefficient just to justify higher prices
@@keech100 Good point. I decided to look up the stats on private rental owenrship compared to commercial:
"84% of tenancies were represented by individual landlords, with companies representing 13% and those with both or other organisations 3%".
it's the vast majority who are not able to off set their loan expenses.
I would be interested in the classification of this. As a Ltd company that is a landlord is often still classed as an individual even through an SPV mortgage. but in addition a strangely high number of landlords dont have any mortgage at all, 41% have non and 24% have some with mortgages. What this tends to imply is there is a small number of Very rich individuals in this market that are not effected by changes in financing
it only takes a tiny few to leave the rental sector for their to be massive shift in prices
Last I lived in North England, I had my rents increased thrice in under 2 years. No thanks lol. I left the country for now.
Where to?
It’s seems quite straight forward, if you import 6 hundred thousand people into the country in 1 year, there will be limited housing for everyone, native and foreign.
I live in a small town, 20 minutes drive from other towns/cities and i can't drive due to disabilities. My landlord is evicting me and there is only 1 or 2 houses that i could apply for that fit the needs of my family. But the number of houses for sale in this small town is crazy so is the number of people looking for houses since we are by no means the only people being evicted. We offered more rent but my landlord said our £800 per month would have to raise to £1300, a number that for the north east is too high but i need to be near here for work or i lose my job since they decided that remote work isn't something they will do anymore after covid.
I live in a normal NW town. My rent has gone up 17% this year to a point I can't afford it. There is nowhere I can rent (£480 1 bed flat) within 50 miles. A housing collapse should be amazing as my situation has made me an extreme anti capitalist. I'm 55 and chronically ill. I've been waiting a year for my PIP approval and I can't continue.
Where will the govt put us all? Or do we sell all our possessions and live on the streets?
My new rent from August will be about 65% of my income.
My pip took me only three months to be accepted. How come yours is taking a year to be processed 🤨
anticapitalism is the only way to save the planet, not just housing. thank you for joining our side.
You're healthcare sucks because it's run by the government.
You're housing market sucks because the government won't let people build more apartments.
You're energy sector sucks because the government funds solar and wind while giving oil companies a 75% tax.
Your renting market sucks because energy prices are so high due to government interference.
Don't be anti-capitalist. Be anti-big government.
The reason why this issue is being ignored is that landlords are the Tories core voter base.
I think every significant political party too. This is one of those things where the Tories surprisingly are only marginally worse than normal. The track record of actual policy is that Labour have genuinely been far better, likewise devolved parliaments' other parties, but still way below enough in all cases.
Yeah, pretty sure no party has made a dent in the problem, and there are several in power in the UK. You keep blaming the Tories for everything if it makes you feel better though.
I don't get why they don't just pass laws saying a portion of everyone's money goes to Tory voters whether they're renting or not
@@0w784g funny that it’s almost like the parties not in charge of the country can’t make decisions on running the country. Are you from the UK, because it sounds like you think we have proportional representation? We don’t, the tories have been running the country for 13 years, all decisions on housing and housing targets were there’s and they weren’t met. A decade was a long enough time to address this problem, hopefully a decade from now it is fixed. Unfortunately with interest rates this high, I don’t even think we can start now. It’s almost like the 2010’s were a great time to invest…
@@doughnutdevourer5667 It's a devolved responsibility, Labour in charge in Wales, SNP in charge in Scotland, Labour London mayor. Are you from the UK? I ask because it sounds like you don't know much about it.
I think the problem with private renting is that there is no regulatory body. Me as a tenant, i have nowhere to go to complaint. Not the agency or the landlord can be forced to fix or improve anything, they only pointing to eachother. Last Septemeber, when my contract was up, the agency raised my rent by 30%. They said; pay up or move out. I would have moved out, but there was nowhere to go. I couldn't find any suitable place on 5 different website. On the other hand, i wouldn't mind the high mortgage rate if the house prices weren't so inflated. The flat i live in, it cost something like £600K and there is not a single solid wall. It's all palsterboard, at night, i can hear people chattering floors below mine. The building is a pile of rubbish, who would in ther right mind pay £600K for a cardboard house??? Of course, there are cheaper, and on different location and all, but all of them are so inflated that it just not worth it.
Hey Jack, this is my first time seeing your new hair after mentioned it on Twitter. It looks great! Very natural and goes well with your face shape.
Buy a motorhome or convert a van, park in your works car park.
It's the only way to save for a deposit.
It's what I do ...but not to save for deposit, but to travel on winter time . Rent goes crazy ....soo f ... them .
@@mariusdon3429
I did it for a few years, was happy to do all the hours I could get as I had no commute and was able to put away a couple of grand a month.
It also meant I was added security for the premises and was available to cover shifts at short notice if someone else failed to turn up.
Thinking of this too, sad this is becoming more of an option for more people
@@triton62674
It's not all that sad.
You can always go away at weekends and holidays to park somewhere nice and when you get paid, aside from MoT, tax, insurance once a year and phone bill, all your wages are yours to spend or save as you choose, not rent, Council Tax, electricity, water and commuting taking half your income away.
It's incredible how quickly rent went from £420 a month to £800 for something similar, add on to that increasing bills and wages that don't go up as much, my rent and bills have taken up to 73% of my after tax income some months. The market is nuts in my area - 16 people signed up to view a flat overnight, first viewing we've been able to get in months because there's so much competition.
10 million extra people in 10 years. Their is not enough properties to go around.
ONS says 3.7 million
Population is growing from a particular source...
Immigration undoubtedly has an impact on house prices and fueling this crisis.
Last year net immigration was the size of Manchester, most from Hong Kong who can afford to purchase property outright
It can only have an effect if too few houses are built in the first place.
Didn't mention cutting immigration. Yes, it ultimately comes down to supply at demand. Building more housing helps, but we also need to lower demand by lowering immigration.
I’m living in fear, as the house I’ve been renting for 8 years which is already 40% of my earnings has only gone up £15 every 2 years. There is a studio apartment in my cul de sac which has gone up for rent and it’s costs the same as my 4 bedroom house!
I was priced out of the market in 2016. Couldn’t afford to buy nor rent, but I was lucky, with 50k equity release from my Mum I moved to Normandie France and now reside in a 200m2 manor house with no mortgage, no rent and minimal council tax. But I’m aware not everyone has that option.
4:09 😂 It's not because landlords are evil greedy parasites, it's because they're greedy evil parasites; completely different thing altogether!
I'm actually surprised on the amount of home owners is 65%, that seems quite a lot considering the needed deposits are
Well the bank owns probably 2/3 of that
Do they discern the difference between main occupancy home ownership, or multiple property ownership?
Probably because it's the older generation which already have houses and make up a larger portion of the population anyways.
3 generations of homeowners. If your parents owned a home, as a child you will inherit it.
Well before the 2000s houses were generally not that unaffordable, it's only in the last 20 years they've gotten bad, 10 years they've gotten terrible, and 4 years they've gotten ridiculous.
In Europe people rent their whole lives and it’s not a big deal
Well, it is, if you are renting, you are lost losing money, if you're paying off a mortgage, you are storing up wealth. Unless of course your rent is some small fraction of a mortgage repayment, say 5% of a monthly repayment.
@@Woffenhorst In the UK majority of people are constantly told to get on the property ladder which is only one way to build wealth. People are also much happier there and less “stressed”
2:51 why do you use shot of St. Vanceslas squere in Prague when talking about Britain?
My tankie friends tell me that all landlords should be jailed for theft
I know the true criminals
So you miss the other big elephant in the room. If you increase immigration rates you need to house the new population . The number of houses that we need to build must reflect the immigration we facilitate. So bottom line is the recent immigration levels over the last 10 years will have an impact on both rental and buying markets. Simple supply and demand. Without mentioning immigration you are showing your political skew and invalidate your video.
Just 18% are renting? In Germany it is 64%, Switzerland even has 68%. Crazy how different countries so close to each other are.
Some countries have laws about how landlords are allowed to eg. raise rents.
@@Woffenhorst They do, but I never thought Germany was particularly good at that. You can pretty much evict anybody, if you simply claim you need the property for yourself now, even if it really is because you are going to rent it out for more later. There is no real mechanism stopping that.
Still, rent control or no rent control, it also means that far more British people have managed to build or buy their own home.
This isn't a comment on there being no issue in the UK or the German housing markets, but there is clearly a huge difference to how people approach it as well.
UK rental crisis has nothing on US rent with housing prices getting even worse. There are commercials advertising first time homebuyers that show first time homebuyers as people in their 40s or 50s, which, at this point, is the more realistic expectation. Rents now are exceed 100% of minimum wage for a month.
Move to Ohio
UK population. 57.72 million (1993) 67.73 million (2023). Our young pay for the 10 million increase. Half a million more people every year. The idiots blame less houses rather than more people. Lest we say where those 10 million came from, our young pay for them anyway. You must never say this. Scrub this fact from your mind. Blame nasty greedy landlords, the symptom over the cause.
Sssh... our house prices are going up and they get to virtue signal. Everyones a winner.
@@wakey87 Yes. Sorry. Wash my mouth out with soap and water.
The ten million increase is a combination of british Breeding and healthy immigration
@@maalikserebryakov Of course, and we mustn't ever say that the 'grandparent's born here' birth-rate is in decline, and getting older, such that our population would be, at least be stable, or in decline. Best lump them all as British and it covers it nicely.
The mould on my wall and I have agreed together that this video is highly accurate.
no one has mentioned the mortgage relief restriction that makes paying for a rental property a good deal more expensive, tories are benefiting from this tax and won’t remove it. Then there is local authority licensing laws, which seem like a good idea - but they are raising the cost of basic housing- a minimum room size in Southwark for a single occupant is now 8m2, under this it’s illegal to rent the room- who has to pay for extra space? The landlords pass this on in rents. The governments clever ideas are back firing again. Overcrowding is a bad thing, but is right now the best time to tackle it with such vigor?
Would help if tNew Labour had let councils take out mortgages then we would have 100s of 1000s of new homes at low rents.
Homes designed to house people not help shareholders.
Should've voted for Corbyn.
@@jasonhaven7170”NoOooOoO Labour will destroy the country again”