Thursday, Feb 26, 2009

Good news for renters

Guardian: Steep fall in rents as unsold homes flood the market

Glut of unsold properties brings rents down - hooray!

Posted by cyril @ 02:11 PM (1077 views) Add Comment

11 Comments

1. a saver said...

Wish rents were going down in my area (rural Fife). My rent has gone up THREE times since I came here in Jul 2007. I would move but there's not a lot of choice round here and I'm getting fed up of hearing how much less my sister is paying on her tracker mortgage for her new 4-bed detached house in Dundee (about 100GBP per month I think). Interesting how people never seem to think about the lost opportunity cost of the interest that their deposit would be earning (if we had decent IRs that is).

Thursday, February 26, 2009 02:35PM Report Comment
 

2. Cynicalsoothsayer said...

a saver @ 1

Yeah, but she'll be losing far more in capital value on her house than the difference between your rent and her mortgage interest. We'll soon see if the MPC can keep IRs low for long, it's artificial and shouldn't last.

Thursday, February 26, 2009 02:57PM Report Comment
 

3. Happyrenting said...

It's obvious that the average rental prices quoted here are pushed up by London. We are in Manchester and our rent has risen by just £25pcm in nearly 4 years. There is an interesting number of student houses around us lying empty (both short of tenants and buyers) and we live just 20 minutes from the universities and on the doorstep of some of the country's best bus links. If interest rates climb back up and mortgages start to look scary again a lot of people will wish they'd rented and waited... Demand still outstripping supply? Mmmmmm...

Thursday, February 26, 2009 04:15PM Report Comment
 

4. Jayk said...

Not in my area! (NE Hampshire/SW Surrey border.)

Rents went up around 20% in 2008 and haven't budged an inch since December. Been renting a two-bed flat for a few years but need to upsize to a three-bed house but at an average of 1,000pcm+ it's still too much.

Thursday, February 26, 2009 04:16PM Report Comment
 

5. Alan Lubin said...

Try brighton. Rents are right down before you start the conversation and then even further down when you start to turn the screws.

Thursday, February 26, 2009 05:17PM Report Comment
 

6. justwatching said...

Noticed today in the local rag in one advert ALL rental properties from one agent where being advertised at REDUCED. Out of these 18 REDUCED properties, 15 were being advertised as AVAILABLE NOW, ie empty. Ha ha, pay the mortgage with that you feckers.

Thursday, February 26, 2009 05:43PM Report Comment
 

7. peter_2008 said...

Unfortunately, a lot of established non BTL landlords (I call them vampires) do sit on huge equity or mortgage free. A good example will be Cambridge and Oxford. Those landlords have been in the business for generations after generations. They can easily manipulate the supply to maintain the price. They also accumulated hundreds years of experience of knowing how to sucking out enough blood from the victims, but keep them alive for “sustainable blooding sucking”.

Thursday, February 26, 2009 05:46PM Report Comment
 

8. quiet guy said...

@peter_2008

Cambridge and Oxford may be special cases - I understand that they are both expensive places to live in. My personal experience with landlords is that older, established landlords who started before the BTL craze are very reasonable to deal with. It's the recent BTL wannabes who worry me more - particularly the prospect of them getting repossessed while I'm a tenant.

Thursday, February 26, 2009 06:01PM Report Comment
 

9. will said...

BBC Ceefax have run this today, but only declared 'steep fall in rents'. They failed to identify by how much.

Thursday, February 26, 2009 06:24PM Report Comment
 

10. a saver said...

Cynical said Yeah, but she'll be losing far more in capital value on her house than the difference between your rent and her mortgage interest.
That's what I have been trying to tell myself but HPC has been slow in comig to Scotland. I heard of someone putting a deceased rellie's house on the market in Cupar right after Xmas and the solicitors said we''ll give it 2 weeks and if it doesn't sell we'll give you your asking price...

Thursday, February 26, 2009 08:11PM Report Comment
 

11. inflation is eating my savings said...

a saver...
My experiences also. Dundee solicitors are still taking the p1ss even though they have shed more than half of their workforces.
I guess this is what the German generals called an ordered retreat as they pulled back behind Stalingrad. Perhaps is is the best way for them. Play hardball, in a nice smiling friendly way. At least they might phone back. Leven is apparently the cheapest place in the UK. Don't know the place.

Thursday, February 26, 2009 10:46PM Report Comment
 

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