Saturday, Aug 29, 2009
Difference getting greater
BBC: Rents rising as landlords sell up
House prices up 1.7% in July
Rents up 0.5%
So in comparison renting is becoming even more attactive
Posted by tenyearstogetmymoneyback @ 08:17 AM (700 views) Add Comment
7 Comments
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1. paul said...
Ah the heady combination of BBC journalists' poor maths (we all remember the BBC website's mixed up maths on the VAT change) and BBC pro-home ownership editorial bias.
They are on good form today.
2. paul said...
This is probably some of the best evidence that the BBC website has a systemic journalistic bias in favour of property-as-investment.
Why else would the BBC draw completely the wrong conclusion from a set of statistics that backs up the assertion that renting is a more cost effective strategy than buying right now?
This is what James Murcodch was alluding to when he spoke of 'state sponsored media' yesterday.
3. techieman said...
This is again hardly surprising. The property market goes up so some people that couldn't get out and had to rent out before, can now liquidate their holdings. OK.
So the rental market has less supply, so the prices go up. The rental market is different from the property buying market and much more responsive. Why? Because a LL and a tennant can give a shorter notice period (ok depending on break clauses, Stat tennancies etc etc.) there is no chain either.
When the falls resume then the cost of rents will also fall. No need to think the BBC are part of a conspiracy... well not this time :-).
4. paul said...
No need to think the BBC are part of a conspiracy... well not this time
The BBC rarely reports on falls in rents.
5. stillthinking said...
My observations looking at the cheap end of rentals in London, is that they have never gone above 2002 levels and there are a few one bedroom places which can't seem to be let at all.
I use property bee with rightmove for this. You can see the price history as they reduce and typically fiddle a bit with the description. My opinion for one bed flats is that in many cases they find their bottom from renting a room, which is a pretty fixed amount, 400/month, which I guess is because simply not worth having somebody in the house for 300/month. So the floor would be about 650 for a one bedroom flat. In London this used to be much higher, 800+. I am sure also having spoken with long term property owners that LHA is the ultimate culprit, as this is both a price and let of last resort, for all the comments about not wanting DSS tenants in.
6. Slappyrick said...
If the BBC is right, and if more people put their houses on the market thanks to the 'rising' market, doesn't that mean that one of the main drivers of rising house prices - the lack of supply - will turn into a glut? Doesn't that imply that there's another phase of house price falls just around the corner?
7. new user 2007 said...
My only question regards the contradiction from the BBC that Slappy mentions...
...on the one hand house prices are going up owing to the lack of supply (they do not mention that it is more to do with the seasonal rise in buyers) but then talk about rents rising owing to signs of increasing supply.