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fru-gal

Highest Number Of Ftb For 7 Years. Then Why Haven't Rents Dropped?

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The theory is that rental prices increase when those that would normally buy are stuck renting, increasing rental demand. Since we now have the highest number of FTB's in years, rents should be falling seeing as all those renters are now getting on the property ladder, freeing up rented accommodation. Anyone see any evidence of this happening (in London)?.

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The number of FTB purchases could be up but still very low relative to the formation of new households by younger people, in which case upwards pressure on rents would continue. Politicians and journalists are obsessed with percentage increases and decreases, but absolute numbers are what really matter to quality of life.

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Also, wouldn't geographic distribution make a difference?

If most of the FTBs are buying outside London and the South East, i.e. where prices are slightly less daft, then their purchases won't make any difference to rents in the Great Wen and its environs.

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My theory is that these magical FTBs are actually BTL liar loan types trying to cash in before the next big thing.

I'm working on the theory if it's too good to be true then it probably isn't.

I'd happily see the end of the BTL nightmare that is causing so many problems in the UK.

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Rental data point.

I moved out of a flat earlier this year.

It went on the market for £20/month more than I'd paid for it in 2005.

A couple of weeks later, it dropped to the exact £ price I'd paid. And was let.

So if the new tenant made no attempt to haggle and is paying the full asking price, that's a nice £0.00 rise in just over 8 years. Doesn't look too bad to me.

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Rental data point.

I moved out of a flat earlier this year.

It went on the market for £20/month more than I'd paid for it in 2005.

A couple of weeks later, it dropped to the exact £ price I'd paid. And was let.

So if the new tenant made no attempt to haggle and is paying the full asking price, that's a nice £0.00 rise in just over 8 years. Doesn't look too bad to me.

Where is this though? London is crazy. I just saw a flat on Rightmove that was advertised as £250 pw in 2012 and is now on for £380 per week (they have updated the kitchen). This is a 2 bed in suburban north London. And they crazy thing is that somebody will probably pay that much.

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My rent down £50 p.m, central Edinburgh.

A good long-term well behaved, clean, working, reliable tenant must be worth £50 pm in anyone's money.........build up your credit tenancy score for a better tenancy rate. ;)

Edited by winkie

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Completely subjective here, but my lease is ending next summer so I've been keeping an eye out for family homes to rent in the commuter belt west and north of London, and I would say that prices are definitely coming down. Several houses that interested me have had the asking rent lowered in the past week, and they seemed pretty reasonably priced to start with.

Also I have some friends who just moved out of their flat in Fulham in order to let it out while renting outside of London. The estate agent told them up front that they needed to be very realistic about pricing because there's a glut of flats like theirs looking for tenants (of course, the letting agent could have just been trying to make his job easier).

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