Tenant is asking that we issue a section 21 to her ???

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    #31
    Biggest way they can help - allow interest rates to rise naturally to where they should have been and stop printing money and inflating asset prices. All these attempts to "help" (by for example imposing higher rates of rent via EPC grade C rules, while banning evictions and offering inducements to first time buyers to make bad buying decisions), are an attempt to deal with the inevitable outcome of trying to shift the bulk of our asset cash to London tax-free own-homes -- which is in effect what has happened.....

    It is firefighting the fires they have lit by spraying them with petrol

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      #32
      Originally posted by AndrewDod View Post
      Biggest way they can help - allow interest rates to rise naturally to where they should have been and stop printing money and inflating asset prices. ...............
      I had a large (for then) residential mortgage when BoE interest rates hit 17% under Thatcher, 15th Nov 1979. That was painful, even with two decent salaries coming in...Very lucky neither of us lost job or eg got sick.

      Careful what you wish for!

      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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        #33
        I was just thinking about this, could you imagine what would happen to the BTLs in this country if savings accounts gave 13.5% interest like they did back around 1990? I would definitely have more money coming in than what I do now.

        I wonder if this is one of the reasons that the public are finding it hard to save, because of the miniscule interest rates they are getting nowadays.

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          #34
          Originally posted by ExpertInAField View Post
          I was just thinking about this, could you imagine what would happen to the BTLs in this country if savings accounts gave 13.5% interest like they did back around 1990? I would definitely have more money coming in than what I do now.

          I wonder if this is one of the reasons that the public are finding it hard to save, because of the miniscule interest rates they are getting nowadays.
          Well of course massive interest is usually accompanied by massive inflation and currency devaluation - albeit not at the exact same time.
          At the moment there is massive inflation - but this is mostly sucked up by housing prices (the real inflation rate is probably around 15% right now with property about 10% and consumer goods and services about 5% - the latter grossly underestimated by the official statistics). It will remain very high but the location will shift.

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            #35
            Originally posted by AndrewDod View Post

            Well of course massive interest is usually accompanied by massive inflation and currency devaluation - albeit not at the exact same time.
            At the moment there is massive inflation - but this is mostly sucked up by housing prices (the real inflation rate is probably around 15% right now with property about 10% and consumer goods and services about 5% - the latter grossly underestimated by the official statistics). It will remain very high but the location will shift.
            I am not sure there is massive inflation, last time I checked inflation was around 2-3%? Yes asset prices have risen, but its not out of the unusual, there have been times before of similar % gains in equities and housing, if not more. Asset prices including housing should not be including in inflation figures, because investments shouldn't be considered as consumption items. Rents should though.

            The issue currently is that asset prices do look expensive on some measures. But they also don't look as expensive as you may think if you consider where interest rates are. Arguably house prices have been driven up by lower and lower interest rates. Perhaps the same with stocks. But that is not the full picture.

            Many people have accumulated a lot of savings to be able to afford housing. especially in London where you do get many on salaries above £80k say. Companies have been innovating and investing in their businesses so that explains some of the reason why equities are higher. Labour costs have also be driven low due to globalisation an immigration which favours companies also.

            The interesting question is what happens next and whether interest rates can rise meaningfully. And even more interesting is what could cause rates to rise. I suspect rates will rise sooner than people think and it will be due to a combination of demographics and politics.

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              #36
              Originally posted by leasee123 View Post
              I am not sure there is massive inflation, last time I checked inflation was around 2-3%?
              I think I did say that the official rate is GROSSLY misleading as to inflationary expenditure. Most of the real stuff is not measured. Even a small bit of thought:

              Rents have gone up by around 15% - for 50% of many people that is half their budget. This single item alone would translate to an inflation rate of around 4% even if nothing else inflated.

              Typically dental bills per family might have been £100 per year. Now dental bills are close to £1000 because people are being forced to go private to get any care at all, and they also have complex dental problems as a result of neglect.

              Headline train ticket prices have gone up by 3% or so, but that ignores the fact that Apex discounts are rarely available and not worthwhile. So the REAL price of travel has gone up far more than 3%.

              Having building work/repairs done has inflated by at least 20% as has the price of materials - but that is not properly reflected in the index.

              and so on. So at least 5% to 10% inflation on the typical family spend of consumables and services right now.


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                #37
                All of these price rises you mention can be explained by the temporary distortions that have been caused by COVID. I also am not convinced with your stated price rises for dentists. But even if true, they will come down as supply/demand dynamics return to pre-COVID levels.

                Your rent numbers may also not be representative of the median rents. We all know space (both indoor and outdoor) carried a premium during the lockdowns and that is where the majority of the rent rises occurred. Clearly some could very well afford those rises, but it doesn't mean they should be used to represent the rent statistics that feeds into the inflation numbers. I suspect the median rent rises were comfortably below 10%.

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                  #38
                  It's economics 101 (as Americans say). You print money (in part due to Covid) you get inflation - nothing transient about it.
                  Glad you think NHS dentistry (or GP services) are going to recover - somehow I doubt it. Covid is not the problem - the problem is that it has been used as an excuse for other stuff (service downgradings, borderline fascistic policies, service elimination).

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