Monday, Nov 17, 2008
But Paragone said rents would rise in the crash!
Fool.co.uk: Rents falling as houses fail to sell
It’s good news for tenants and bad news for landlords: according to the latest survey from the Royal Institution of Chartered Surveyors (RICS), residential rents fell dramatically in the third quarter of this year.
The record fall comes thanks to the lettings market being “flooded” by unsold properties being put up to let. This news tallies with my own personal experience. Recently, I made an offer to rent a property in a city in the Southeast. The previous tenants had lived there for two years, paying £1,800 a month. I offered the landlord £1,650 a month, which he promptly accepted -- saving me £1,800 a year. And I'm not alone.
Disclosure: The author sold to rent in 2005, and has no plans to buy till 2010/11
Posted by little professor @ 06:25 PM (848 views) Add Comment
9 Comments
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1. stillthinking said...
I must be the poorest regular poster on this site.
2. Fjcruiser said...
rents have come down because of an increase in supply and a drop in corporate tenancies as well, certainly in London. Although the drop in rental prices is smaller than the drop in property prices, rents will carry on going down for quite a while IMHO.
3. stillthinking said...
Sorry. I just realised the quote is from the article not little professor. I have inadvertently revealed that I post without necessarily comprehensively reading the relevant article.
I humbly apologise.
4. vindicated said...
Great stuff. By way of back-up, our rent has not increased one penny in over 5 years (yup, sold to rent just a wee tad early). Can't imagine I could have said the same of a mortgage.
5. I'm Alan Partridge said...
so, imho the house price slide, correction, soft landing (ah picture the falling leaves of autumn), crash is today at -20% from peak with a bottom being -40% to -60% from peak, depending on it being a Victorian town house or a stunning modern apartment forming part of a development of 50+.
6. Fingerscrossedmcgraw said...
I've just haggled on my rental from £3000 pcm to £2500 pcm, nice.
people think I'm mad paying this rent, but we live in a 1.5mil house for less than the mortgage on a 500k house!
7. little professor said...
@stillthinking
No probs, as least you read the summary, which is more than some posters do. For the record, I'm paying £525/month for a house that was worth £275,000 when I moved in - rather less now though
8. inbreda said...
no worries vindicated. I STRd in end 2002. Went travelling. Now rent a place for £1000 a month that would cost me about 450,000 to buy. Our timing wasn't perfect, but I have no regrets!
9. drewster said...
Well it'd be nice if I could afford £3,000pcm on rent! Or even £1,800pcm. I really don't know how you Londoners cope.
I'm paying £1,100pcm for a house worth (at the peak) £290,000. Can't say I've seen falling rents in my neck of the woods yet, but I guess it'll take time to filter through. I've heard anecdotal reports of Eastern European workers failing to turn up at pre-arranged jobs because of the falling pound. That's bound to have an impact on rental prices.