Prvate Rents In England Unaffordable Says Shelter

[wheels]

Private sector rents 'at new high in England and Wales'

 

http://www.bbc.co.uk/news/business-15384791

[ballaughbiker]

So wha we got here? A bbc article saying rents are at an all time high with a picture showing London for rent boards. They then go on to say they've gone up 4.3%. With inflation running at over 5% they've actually gone down in real terms then.

 

I fully accept many people's wages haven't increased during that period so a larger chunk of their tax paid income is taken in rent, but that's not the same thing is it? They might be at an all time high in London but they haven't generally gone up in real terms.

[Albert Tatlock]

So wha we got here? A bbc article saying rents are at an all time high with a picture showing London for rent boards. They then go on to say they've gone up 4.3%. With inflation running at over 5% they've actually gone down in real terms then.

 

I fully accept many people's wages haven't increased during that period so a larger chunk of their tax paid income is taken in rent, but that's not the same thing is it? They might be at an all time high in London but they haven't generally gone up in real terms.

Private sector pay rises in the UK are averaging less than 3% this year, with inflation running at 5% - therefore average rents have gone up in real terms.

[ballaughbiker]

I think we are talking about different things when we use the phrase "real terms". As I originally said , the percentage of tax paid income required to pay the new rent will have increased for most tenants. This applies even more to public sector workers who have had 0% increase! However what I meant by real terms is the way, say, a landlord would look at it. The rent increase has not kept pace with inflation and its real value has therefore decreased. But hey, who cares about the landlord. They're all rich innit?