"Half Their Income On Rent!" Georgie Frost Talks Rising Cost Of Renting Property In UK — Transcript

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1. 0:00now it's a nightmare if you want to get
2. 0:02a foot on the property ladder that's
3. 0:04there a thought from renters new
4. 0:06research out today shows the cost of
5. 0:07renting your average home is nearly 1
6. 0:10300 quid a month and that skyrockets to
7. 0:13more than two and a half Grand in London
8. 0:15nobody better to speak to the Georgie
9. 0:17Frost interim edit with the times money
10. 0:19Mentor Georgie so good to see you back
11. 0:21from California you've made that point
12. 0:22you're in the Break
13. 0:24um before we talk specifically yesterday
14. 0:25I don't know if you were in the air but
15. 0:26Richie's Sue next speech and this big
16. 0:28decision about hs2 and I want to start
17. 0:30in this way it is prohibitive for people
18. 0:34to even afford a mortgage from the
19. 0:36figures out about renting today rentals
20. 0:39it's outrageous across the whole of this
21. 0:42country and yet not a word from Richie
22. 0:44sooner yesterday about the very people
23. 0:47who I suspect wanted to hear how can we
24. 0:50afford to live no disrespect to hs2
25. 0:52we're talking about billions of quids
26. 0:54spent on infrastructure there are people
27. 0:55the length and breadth of this country
28. 0:56can't afford to rent a bleeding house
29. 0:58yeah you're absolutely right these
30. 1:00figures figures that have come out so
31. 1:02they're absolutely shocking I thought
32. 1:03I'd stop by you know from California
33. 1:04just to say hello and talk about this
34. 1:06issue it is a big issue and it comes
35. 1:08down quite simply to supply and demand
36. 1:11and the two things are very linked to
37. 1:13mortgage rates High interest rates at
38. 1:15the moment and the fact that rents are
39. 1:16very high so we have now three times as
40. 1:20many people going for properties to rent
41. 1:22than we were in 2019. that's 25 people
42. 1:26on average going for one property we're
43. 1:29seeing rents absolutely sore
44. 1:31particularly in the capital but around
45. 1:33the rest of the country as well as I
46. 1:35said it's due to supply and demand a lot
47. 1:37of landlords have left the market the
48. 1:39conditions for them to make their
49. 1:41investment work just isn't working
50. 1:43because of high rates that are going on
51. 1:44at the moment but also the government
52. 1:45are putting on a loss of pressure for
53. 1:47things like Energy Efficiency of homes
54. 1:49which could cost them thousands tens of
55. 1:52thousands to get their homes up to
56. 1:53scratch so they're leaving the market or
57. 1:56they're renting it out on things like
58. 1:57Airbnb you think if they're leaving the
59. 1:59market great they're selling first time
60. 2:00buyers we can get on property that's not
61. 2:02happening because investors aren't
62. 2:04buying up those properties that being
63. 2:06sold so you're having a death of people
64. 2:08who are willing to to rent out homes and
65. 2:11that's the reality the market just isn't
66. 2:13functioning on any level
67. 2:15I I stopped renting uh five years ago
68. 2:18when I bought a canal boat to start
69. 2:21living on because I couldn't afford rent
70. 2:23then no no I was I was yeah I was paying
71. 2:25600 that was 600 Quid a month which now
72. 2:28I mean that would be dirt cheap and so
73. 2:30so many of my friends are in these these
74. 2:32long-term contracts and the landlord
75. 2:34ultimately has so much power over them
76. 2:37because if he turns around uh well I'm
77. 2:39thinking of one specific obviously
78. 2:41landlords can be ladies too if he turns
79. 2:43around and says well that's it an extra
80. 2:45500 quid a month or you're out they're
81. 2:47gonna have to move out of London that's
82. 2:48what we're seeing at the moment and my
83. 2:50land lady is a lady and has raised rents
84. 2:53and the question is take it or leave it
85. 2:55quite simply and the guy on demand again
86. 2:58absolutely what I would have liked to
87. 2:59have seen from the government is they
88. 3:00have this renters Reform Bill going
89. 3:02through Parliament or it should be
90. 3:04should be debated in Parliament but
91. 3:06we've got no word on when that might
92. 3:07come in it will ban so-called no-fault
93. 3:10evictions which means the landlord can
94. 3:11get rid of you with two months notice
95. 3:13simply to raise prices which is what
96. 3:15they're doing at the moment and we've
97. 3:16seen that because yes they are facing
98. 3:19cost Rises but also if they can get a
99. 3:21buck or two extra they will do it's a
100. 3:23market so we're seeing three times as
101. 3:25many people get thrown out of their
102. 3:28house essentially it isn't sorry isn't
103. 3:29it interesting you you were saying about
104. 3:31but but your boat it's interesting that
105. 3:33you started this by saying there are
106. 3:36what three times the number of people
107. 3:38going for properties so unscrupulous
108. 3:40landlords who have have made it for
109. 3:42years suddenly they look at mortgage
110. 3:44hikes or business whatever it is so they
111. 3:46hike it and because I presume it's so
112. 3:49difficult to find somewhere else to live
113. 3:51you swallow it if you can can we get it
114. 3:53away from London though I mean what was
115. 3:55it the average did he 1300 quid across
116. 3:58the whole of this country people are
117. 3:59yeah Nick am I right was I reading a
118. 4:01figure 40 of our income is being spent
119. 4:03on rental or mortgage rates a third of
120. 4:06people Us in this country are spending
121. 4:07over half of their income on their rent
122. 4:10I've just moved down from Yorkshire
123. 4:11where my rent was 750 quid you know you
124. 4:14think about it I think that's absolutely
125. 4:16Dirt Cheap in comparison to think that
126. 4:18would be double now almost on average
127. 4:19around the country is is shocking for
128. 4:22people to be able to afford it it's
129. 4:23because we're having more people who are
130. 4:25presumably wanting to live on their own
131. 4:27they can't afford perhaps to get on the
132. 4:28property ladder because mortgage rates
133. 4:30are so high bearing in mind just two and
134. 4:32a half years ago you could get with a
135. 4:34big deposit you could get a sub 1
136. 4:35mortgage now you're looking on average
137. 4:37about six percent that is a huge amount
138. 4:40house prices are still high we're in a
139. 4:41very difficult situation for people and
140. 4:44the supply the supplies there the demand
141. 4:46is there the supply isn't there so until
142. 4:48we get that fixed we are going to see
143. 4:50this situation continue and rents keep
144. 4:53going up do you think we need to have a
145. 4:54wider conversation about the ethics of
146. 4:57being a landlord and how much profit a
147. 5:00landlord could make because ultimately
148. 5:02single doesn't it well yeah we talk all
149. 5:04the time about people on benefits people
150. 5:06you know getting money when they haven't
151. 5:08gone out and and worked and earned yeah
152. 5:10agree and I completely think you know I
153. 5:12agree that landlords obviously deserve
154. 5:14to make a profit on what they are
155. 5:17renting certainly covering schools in
156. 5:20place I agree with you I do think this
157. 5:22renter's Reform Bill needs to go through
158. 5:23or do you think things need to be firmed
159. 5:25up we see it in other countries like
160. 5:26Germany where they have a very
161. 5:27functioning very regulated market I do
162. 5:30think that's the case I do actually
163. 5:32think even as a renter I'm going to have
164. 5:33some sympathy here for landlords there
165. 5:35has been a lot of tax changes which have
166. 5:37made it actually just unaffordable for
167. 5:39them to be in a market The Narrative
168. 5:41around landlords isn't helpful we need a
169. 5:45fully functioning market so if you are
170. 5:48going to hammer landlords with tax Rises
171. 5:50energy certificate commitments that they
172. 5:53have to adhere to and in the press and
173. 5:56everywhere else we are you know if
174. 5:58you've got this narrative built up about
175. 5:59terrible landlords are you going to want
176. 6:02to be a landlord and the reality is we
177. 6:04need that why do we have in this country
178. 6:07this attitude that owning a home is the
179. 6:10only answer to anything renting actually
180. 6:12is a great solution for people if you
181. 6:14move around the country get jobs it'll
182. 6:16be great for Northern Powerhouse and all
183. 6:18that sort of thing you can move around
184. 6:19the country if you can find one the
185. 6:21housing Minister has promised to ban
186. 6:22landlords for evicting tenants without
187. 6:24justification
188. 6:25um evictions this is interesting uh talk
189. 6:27to his very own Rosanna Lockwood tweeted
190. 6:29this only yesterday and I quote real top
191. 6:31quality day in modern Britain house
192. 6:33viewings for another rental because my
193. 6:35landlord wants a house back for Airbnb
194. 6:37and of course I can't afford to buy in
195. 6:40this market rosanna's done at seven by
196. 6:41the way that's interesting isn't it it's
197. 6:43the reality yeah it's fascinating they
198. 6:45need to be tied to regulation on airbnbs
199. 6:47as well yes I mean that's a whole nother
200. 6:49debate to discuss but look the
201. 6:50government is trying to get rid of these
202. 6:51so-called no-fault evictions as you say
203. 6:53this is when they just want to raise the
204. 6:55price they don't have to give you a
205. 6:56reason for chucking you out and it
206. 6:58leaves people absolutely they say oh you
207. 7:00can have two months two months notice
208. 7:02well look I'm I'm a single person it's
209. 7:03not a problem for me imagine if I had
210. 7:05family kids in a school and you've given
211. 7:08me two months to get there are more
212. 7:09people renting in this country than
213. 7:11there are mortgage holders over the
214. 7:12summer we saw the government push down
215. 7:14on lenders very heavily to give
216. 7:16protections to mortgage holders we would
217. 7:19like to see the same thing for renters
218. 7:21as well so the fact this is on the
219. 7:22agenda and people are talking about it
220. 7:24is great news now action needs to be
221. 7:26taken if you are in the market though
222. 7:28very quickly I'd say for renters get in
223. 7:30there early if you can don't wait around
224. 7:32to view the house set up property Alerts
225. 7:34get all of your documents and
226. 7:36information together and ready to go and
227. 7:39you're going to need to be a little bit
228. 7:41flexible there's a lot of people looking
229. 7:42for the same sort of property yeah
230. 7:46having your mind a budget and I know
231. 7:49this is difficult but have in your mind
232. 7:50because it's so tempting to offer a
233. 7:52little bit extra a little bit extra but
234. 7:53that little bit extra is going to really
235. 7:55add up and put you in trouble 100 but
236. 7:58Georgie Andy the fear of not actually
237. 7:59having somewhere that that's knowing
238. 8:01there's 24 other people behind you
239. 8:03willing to take these properties apps
240. 8:05but what's the worrying thing about this
241. 8:06is also having an impact on people's
242. 8:08lives yeah most people who rent to 16 to
243. 8:1034. they're going to be staying longer
244. 8:12with their parents putting Financial
245. 8:13pressure on their parents not my making
246. 8:15life decisions if they do make life
247. 8:17decisions what are they going to do move
248. 8:18in with a partner too early I mean
249. 8:21that's a whole nother issue to go down
250. 8:22there are life decisions being made
251. 8:24Jeremy are looking a little bit nervous
252. 8:26there but it's true you know it's those
253. 8:28sorts of impacts that you don't see
254. 8:29listen I'm going to end up on your boat
255. 8:31in a minute aren't you yeah yes you will
256. 8:33absolutely and why do you think I'm with
257. 8:34Nick ashes because he he's a homeowner
258. 8:37um but it's not just like you were
259. 8:38saying the the money and the cost that
260. 8:40go into this but the time to try and
261. 8:43find a place particularly if you're
262. 8:45moving to a different city I've heard a
263. 8:47lot of of people saying that they by the
264. 8:50time they've booked their train to go to
265. 8:52say Liverpool from Manchester to view a
266. 8:54flat the Flat's already gone up for sale
267. 8:56oh when I was looking for flat and this
268. 8:58was last year I had booked five viewings
269. 9:00in a day in the morning all but one went
270. 9:04so I took the first one I saw which I
271. 9:07wouldn't recommend normally but it's
272. 9:09that and that was last year and I think
273. 9:11the market is way hotter now Jim just a
274. 9:13couple of uh messages loads actually
275. 9:15just a couple of responses amen rent
276. 9:17will also go up again in April because
277. 9:18now the national wage is going to be 11
278. 9:20pounds per hour it's sick that's a
279. 9:22relevant point isn't it look I mean if
280. 9:25you read The Right Move data that came
281. 9:26out today they're suggesting that we may
282. 9:28have reached a peak that actually we're
283. 9:30seeing more properties come to Market
284. 9:31but it's not yet filtered through into
285. 9:33prices I'm not quite so bullish we will
286. 9:36see let's hope so really good service on
287. 9:38Georgie Frost as ever thank you