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Rents in UK will rise for next five years, experts predict

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Well they should knock themselves out and borrow loads to buy rentals.

The reality is that Brexit will see 4m EEers leave as they are no longer entitled to benefits and free public services.

And there will be further cuts to housing benefits.

And benefit reforms.

 

 

 

 

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8 minutes ago, spyguy said:

Well they should knock themselves out and borrow loads to buy rentals.

The reality is that Brexit will see 4m EEers leave as they are no longer entitled to benefits and free public services.

And there will be further cuts to housing benefits.

And benefit reforms.

 

 

 

 

if they live here 5 years up to the date the UK leaves, assuming a transition period, they can stay?

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7 minutes ago, hurlerontheditch said:

if they live here 5 years up to the date the UK leaves, assuming a transition period, they can stay?

If they can afford too.

80% of EE rely on benefits.

 

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Usual scaremongering that assumes landlords blow up their houses when they sell them. Selling to FTBers reduces the pool of renters. And, as others have pointed out, the first people to make the transition from renter to owner will be the wealthiest renters. Those left still renting will be those with lower incomes - putting downwards pressure on rents...

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2 minutes ago, spyguy said:

If they can afford too.

80% of EE rely on benefits.

 

One of my favourite Management writers is Steve Covey. He describes behaviour change as being effected by a trim tab an analogy from planes, before the main aileron moves a small tab lifts up to start he process of banking, without it the aileron would just rip off.

 The analogy is so applicable to the referendum vote - we haven't left yet but our direction of travel is clear and we will be rightly so a less soft touch for EE immigrants. Numbers will reduce in the millions and at least 95% of them renters

So spot on again SG 

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If a house is no longer rented does it cease to exist? 

I predict prices will rise actually on energy, food etc but that housing will go down nominally. The British Emperor is wearing no clothes and this is demonstrable with regards to interest rates.

A move designed to strengthen the £ has in fact begun a run on it. Hyperinflation is but a moment away. 

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37 minutes ago, dragging boot straps said:

If a house is no longer rented does it cease to exist? 

I predict prices will rise actually on energy, food etc but that housing will go down nominally. The British Emperor is wearing no clothes and this is demonstrable with regards to interest rates.

A move designed to strengthen the £ has in fact begun a run on it. Hyperinflation is but a moment away. 

The trouble is 'good' inflation has been impossible to engineer, globalisation, the more effective uses of resources (electric cars working from home) AI, robotics. etc are all effectively inflation stoppers with the damaging effect on wages

As for food prices rising most people eat twice as much as they need in the 1st world hence our obesity crisis

There could be more inflation than we have seen of late but unconvinced it will lead to hyper inflation

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The article is obviously supposed to be a dire warning but it talks about a 15% rise over 5 years. Talk about underwhelming, that isn't even business as usual in Landlordworld.

(Notwithstanding the factors such as EEs leaving and sold houses not exploding that others have already made.)

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1 hour ago, spyguy said:

.....

The reality is that Brexit will see 4m EEers leave as they are no longer entitled to benefits and free public services.

......

 

 

 

 

Well you'd hope that was the case, however I've seen nothing that indicates that will happen.

Any references from uk gov?

 

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Experts (VI) say....blah...blah.....Brexit....blah....blah. What annoys me the most about the majority of these articles is the lack of diligence from the (so called) Journalist, no challenges, no counter-opinion...just an "expert" has spoken so listen up people.

What interested me most on that page was the timeline of stories below, is it any wonder the general public struggle to comprehend what's going on? Over the space of 2 months you've got crash vs no-crash,  prices tumble/slump vs prices rising at fastest rate ever.

 

 

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It looks like a non-article to me.

15% over 5 years equates to under 3% per year, which is probably no different from expected RPI inflation.  The headline should read "Rents expected to remain constant in real terms" which isn't very attention grabbing.  I guess the RICS need to get their PR article out there knowing the journo will just copy and paste.

 

Edited by nightowl

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4 minutes ago, nightowl said:

It looks like a non-article to me.

15% over 5 years equates to under 3% per year, which is probably no different from expected RPI inflation.  The headline should read "Rents expected to remain constant in real terms" which isn't very attention grabbing.  I guess the RICS need to get their PR article out there knowing the journo will just copy and paste.

 

My thoughts exactly.  One thing is certain, nobody knows what is happening.

I do like the 'aileron analogy' further up the page and it does fit in with the possibility of a 'crash' if it all goes wrong.

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1 hour ago, Freezer? Best place for it said:

These are the same "experts" that saw the GFC.  An attempt at justifying that they exist.

As a general rule if something is titled "Experts predict..." or "Scientists now think..." I think much the same.

Not housing related, but a perfect example:  https://www.bbc.co.uk/news/science-environment-45084144

Edited by nightowl

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Reported with delight on BBC website...

https://www.bbc.co.uk/news/business-45113867

I would highlight comment possibly from one of us...

11. Posted by John_from_Hendon on 3 hours ago

This problem (as is the affordability LIE) is all down to Mark Carney's gang of monetary pricing crooks deliberately debasing the value/price of money. Free Money CAUSES huge asset=property inflation which passes on through the system to rents.

1. FIRE MARK CARNEY

2. Raise rates.

3. Recover all the QE given to the bankrupt banks!

4. Make banks borrow the money they lend from savers!

 

No mention as far as I can see that if they are not being rented out then they must be OO therefore the switch from rented to OO has reduced demand for rental???  Same old nonsense implying the dwelling vanish when sold by the BTLer.  The big story is reduced demand for rentals from EEs...this has potential to change the market dynamics completely. 

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1 hour ago, nightowl said:

It looks like a non-article to me.

15% over 5 years equates to under 3% per year, which is probably no different from expected RPI inflation.  The headline should read "Rents expected to remain constant in real terms" which isn't very attention grabbing.  I guess the RICS need to get their PR article out there knowing the journo will just copy and paste.

 

Yep.

All prices are going to rise by about 15% over 5 years, if things stay as they are.

They’re confidently predicting that the changes introduced to landlord taxes will have no impact whatsoever.

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Looking around Romford at the prices of 2 beds prices are Defo going up unfortunately.

I may be paranoid but I have noticed a new tactic. A flat will go on at a rental asking price which is around 40% higher than it should be. Then another will come on at 20%. The 20% one now looks cheap and for any one new to the market will look tempting.

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4 hours ago, BorrowToLeech said:

Yep.

All prices are going to rise by about 15% over 5 years, if things stay as they are.

They’re confidently predicting that the changes introduced to landlord taxes will have no impact whatsoever.

The added costs to landlords will be burdened by the renters.

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56 minutes ago, cashinmattress said:

The added costs to landlords will be burdened by the renters.

The CML are predicting that this won’t happen.  According to them, rents are going to rise more or less in line with inflation. 

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7 hours ago, Horridbloke said:

The article is obviously supposed to be a dire warning but it talks about a 15% rise over 5 years.

In other shocking news, 40% of sick days occur on Monday or Friday.

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  • 261 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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