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Guest pioneer31

Will Rents Rise Or Fall?

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Guest pioneer31

What is likely to happen with rents as the housing slump plays out?

Having used a simple mortgage calculator and Rightmove's site to compare rents and prices, it appears that renting here is somewhat cheaper than buying, although renting isn't actually cheap!. However, as prices slump and BTL's bail out, the rental supply will decrease, so won't that cause the trend to shift upwards?

Or are there more variables involved resulting in a more complex and maybe more uncertain picture?

Thoughts please.

Edited by pioneer31

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What is likely to happen with rents as the housing slump plays out?

Having used a simple mortgage calculator and Rightmove's site to compare rents and prices, it appears that renting here is somewhat cheaper than buying, although renting isn't actually cheap!. However, as prices slump and BTL's bail out, the rental supply will decrease, so won't that cause the trend to shift upwards?

Or are there more variables involved resulting in a more complex and maybe more uncertain picture?

Thoughts please.

I've wondered muchly about this. Your argument appears logical to me, but I also wonder whether demand for property actually decreases when there is a downturn. How can this happen (even given a static population)?

Well, I reason that people are more likely to rent together, share space, live with their parents etc., if they are not in what they see as secure jobs and/or can't afford a property on their own.

What I lack are figures on this and/or precedent. I've no idea what happened in the last recession.

Another factor is that if property becomes relatively cheap, then those that can will see that yields are rising and buy to rent again. They will undercut their competitors, and rents fall. But then, property demand increases. Hmmm.

Anyone got any real evidence either way?

I know from observation that rental property in my area (W2/W8/W11) has certainly not risen and, if anything, has fallen. I'm paying less now than I was 5 years ago and for a bigger place at that.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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