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Rents Are Going Up, Why Are Houses Going Down?

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On the news today are reports about the massive increased rents due to people unable to get a mortgage and flooding the rental market (it's supply and demand innit?). In which case, if there's a drop in demand for mortgaged properties, why haven't prices dropped ?

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I suspect that you're wrong on both counts of increased rents and prices. Be careful who you believe

On the news today are reports about the massive increased rents due to people unable to get a mortgage and flooding the rental market (it's supply and demand innit?). In which case, if there's a drop in demand for mortgaged properties, why haven't prices dropped ?

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I suspect that you're wrong on both counts of increased rents and prices. Be careful who you believe

I agree,government propaganda with VI through media manipulation.

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Manchester city centre Apartment rents are definitely up but the few that are selling are suffering truly nasty/lovely price falls. Don't think there's any difference to house rents on the inner ring road outwards.

Edited by cica

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I agree,government propaganda with VI through media manipulation.

+1.

Since everyone lives somewhere, the people newly renting must have vacated somewhere else, net increase zero.

The only way a whole lot of extra people could suddenly appear is 1) immigrants or 2) parents making children homeless age 26.

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I suspect that you're wrong on both counts of increased rents and prices. Be careful who you believe

Rents are slightly up for some flats and smaller houses in some areas. However it is not even. The higher priced rentals have been found falling when I looked recently. I have noticed a number of properties actually offering a reduced rent. IMO rents have hit the buffers. Many incomes are falling and HB is now being reassessed to limit claims. I don't expect many more rent rises and they may well fall over the next 12 months. LL's will come apart if they buy more property to rent on the basis of current rents, some of which are over stretched and could well fall back later. IR's are rising whatever anyone says.

I very recently said on this site I thought our credit rating will suffer before long when the markets realise we cannot pay our debts without any growth. Well, what do you know.....here is that view in the Telegraph. http://uk.finance.yahoo.com/news/UK-rating-downgrade-tele-2811052645.html?x=0

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On the news today are reports about the massive increased rents due to people unable to get a mortgage and flooding the rental market (it's supply and demand innit?). In which case, if there's a drop in demand for mortgaged properties, why haven't prices dropped ?

...simples.. :) ...the Government are supporting house prices through various ponzi schemes and encouraging FTBs ...imagine...and they are inflating house rentals through fanciful housing benefit to the joy of BTLers....there are no secret formulae...just transparent stupidity from people who cannot Govern..... :rolleyes:

Edited by South Lorne

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On the news today are reports about the massive increased rents due to people unable to get a mortgage and flooding the rental market (it's supply and demand innit?). In which case, if there's a drop in demand for mortgaged properties, why haven't prices dropped ?

Deflating bubble. Many people don't care about claimed returns, they want to get out.

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+1.

Since everyone lives somewhere, the people newly renting must have vacated somewhere else, net increase zero.

The only way a whole lot of extra people could suddenly appear is 1) immigrants or 2) parents making children homeless age 26.

Hasn't the rate of net migration gone up? So we now have more than 200K more people than a year ago in this country?

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Asking prices for rentals are definitely up in my area, and they were being rented out for these prices back in September. I suspect this isnt the case at the moment though

...they will match the asking rental to the area's housing benefit limit....and price people struggling to pay without government assistance out of the market...common sense is kicked aside... a nation's final death spiral.... :rolleyes:

Edited by South Lorne

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  • 284 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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