Tuesday, Nov 18, 2008

Now rents are falling alongside house prices

BBC: Glut of unsold homes hits rents

A glut of unsold homes has flooded the rental market, driving down rents at the fastest rate on record. The Royal Institution of Chartered Surveyors (Rics) said new instructions to sell flats and houses had been at record levels in the past few months. However, Rics said many people who cannot sell their homes have decided to let their properties, and this increase in supply has pushed rents down. The proportion of surveyors reporting lower rents was its highest since 2003.

Posted by jack c @ 08:59 AM (537 views) Add Comment

13 Comments

1. Athom said...

but Phil was so sure rents would go up as people weren't buying! My faith in humanity falls.....

Tuesday, November 18, 2008 09:18AM Report Comment
 

2. Minx_man said...

I never fully understand this, if you can't sell your home and you end up renting it out where do you end up living? Surely if you're buying another home then somebody else is selling it to you so the net effect would be zero. Similarly if you rent your new "home" from a landlord then how can rents be pushed downwards...maybe its too early for my brain to start working . . . .

Tuesday, November 18, 2008 09:25AM Report Comment
 

3. george monsoon said...

Good. I have to move out of my rented house next year, so I will shop around.

I worked out how long it would take me to save the 20k deposit needed to get a mortgage.. and if my wage stays with inflation, It will take me 15 years.
What a load of "£$%*£$%^&^%""£$%

Tuesday, November 18, 2008 09:34AM Report Comment
 

4. Missingteddybear said...

This completely debunks the myth that there us a shortage of houses in the UK. All this 'pent-up demand' must be living somewhere. I find it incredulous that house prices and rents are falling at unprecedented pace and VI are still harping on about land shortage and not enough houses being built blah, blah, blah ...

Tuesday, November 18, 2008 09:40AM Report Comment
 

5. paul said...

Notice how the BBC has buried the story under "other business stories".

Those website editors must still have a lot of unwanted exposure in their portfolios.

Tuesday, November 18, 2008 09:53AM Report Comment
 

6. doomwatch said...

These facts about rents dropping seem to conflict with the opinions Phil was giving out last night as "advice" on his pwoperty telly programme.

Tuesday, November 18, 2008 10:06AM Report Comment
 

7. crutchley said...

I'm also struggling to find evidence of it in my area (east london) and my landlady wants to put the rent up 4% in Jan

Tuesday, November 18, 2008 11:09AM Report Comment
 

8. Mapp1066 said...

RICS (and the BBC) are way behind on this - rental market has been flooded where I live (just outside Bristol) for a couple of months now - and rents are going down (this property has been on for some months, is empty and has dropped recently in price by £100 per month - http://www.rightmove.co.uk/viewdetails-11295096.rsp?pa_n=2&tr_t=rent&mam_disp=true ).

Only problem I can see (talked about recently on here) is that Rightmove seems to be loosing its share of the market.... Local paper is now the only way to get a true idea about whats out there.

Tuesday, November 18, 2008 01:16PM Report Comment
 

9. sold out said...

yes, this was inevitable.Another kick in the b@lls for all the BTL parasites.
Agree 100% missingteddybear "This completely debunks the myth that there us a shortage of houses in the UK."

There is no shortage of property and never has been?
Where does the pent up demand go, when they cant afford a morgage or rents? simple they go back to/ or stay with mum and dad.
Crutchley@11.09am
Don't pay the increase, stand your ground.Dont pay for BTL greed.

Tuesday, November 18, 2008 02:08PM Report Comment
 

10. rumble said...

A few seconds of surfing easily and massively trashed the shortage propaganda. And now, back in with family, in with friends, rent out rooms, security psych during tougher times partners move in together take relationships more seriously.

Tuesday, November 18, 2008 03:11PM Report Comment
 

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