Jump to content
House Price Crash Forum
Sign in to follow this  
Tired of Waiting

Is Prime London Buy To Let About To Crash?

Recommended Posts

If this chart is right (from primelocation) then rents in Prime London (PL) will keep falling.

Will the Buy To Let there cope with it?

Rents about 20% lower in one year. And despite that, stocks doubled. And are about 3 times higher than in Jun 2007.

primelondonlettingsstoc.png

Edited by Tired of waiting

Share this post


Link to post
Share on other sites
If this chart is right (from primelocation) then rents in Prime London (PL) will keep falling.

{SNIP}

Very interesting... looking at the FinaProperty rental index for August they also claim a drop in rents of around 6%, this would appear to be across the board rather than "Prime London" (I will have a look to see exactly what Prime London means)

The quote from Michael O’Flynn is also interesting:

Michael O’Flynn, Director of FindaProperty.com, comments:

“The London rental market seems to be largely immune to the recovery seen in the rest of the country. This is partly attributable to the dominance of flats, of which there is a glut. On top of that, there are fewer new graduates and first jobbers coming to live in London, because of the lack of jobs at the moment. In the current environment, houses for rent in London are faring somewhat better, with some families who in other circumstances would have bought a house turning to the rental market instead. I think we may have to wait until there is a widespread uplift in the economic outlook and an improvement in the jobs market before we see a real recovery in the rental market in London.â€

EDIT: to reduce quoted text

Edited by Bubble&Squeak

Share this post


Link to post
Share on other sites
Very interesting... looking at the FinaProperty rental index for August they also claim a drop in rents of around 6%, this would appear to be across the board rather than "Prime London" (I will have a look to see exactly what Prime London means)

The quote from Michael O’Flynn is also interesting

It seems that by "Prime" London they mean: "Central London, Central/South West London, North West London, Islington, City & Docklands, West/South West London."

To see the web page you have to click the upper middle tab "Prime Lettings Index", at:

http://www.primelocation.com/house-price-index

Is this "Michael O’Flynn" really believing in the gov. spin, that the "recession is over", and we will have a "recovery" from now onwards?!

Is anyone really buying into that? If so, it does boggle the mind.

Or is he just trying to "talk the market up"?

Share this post


Link to post
Share on other sites
they also claim a drop in rents of around 6%

If the stock really went up like that, then it will surely force rents down. The question becomes: by how much?

The answer depends on what economists call "price elasticity", or, how sensitive the price/demand is. In some products, a small change in price results in a big change in demand. In other cases, it doesn't much. It depends on competition, need, etc. I guess people need to live somewhere, but they can share, go back to parents home, downsize, commute, etc. And when someone loses a job, they have no choice.

Besides trying to think, one could also see what happened in previous crashes.

Anybody has any info/idea?

Cheers

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   287 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.