Jump to content
House Price Crash Forum
Sign in to follow this  
Justice

Is The Drop In House Prices

Recommended Posts

One of the major factors concerning markets today, and being blamed for the current correction in the stock markets is the potential for rising inflation and from a US perspective it’s was said on CNN today that rising rents due to people getting out of the US housing market was a major contributing factor so it looks like TTRTR maybe in for a windfall, we that is if he ignores the fall in his assets value.

Meanwhile in France they have debating an new immigration bill 76% of French voters say that something needs to be done.

All these French frogs are obviously racists, all 60m of them and this has nothing to do with high unemployment, maintaining a way of life like eating frogs legs or the race riots from recent months and categorically nothing to do with a shortage of housing or effects on the infrastructure and even less to do with one in three babies born in France being a Muslim, no they are just racists and I’m sure the UK will welcome all them people the French kick out with open arms.

Share this post


Link to post
Share on other sites

One of the major factors concerning markets today, and being blamed for the current correction in the stock markets is the potential for rising inflation and from a US perspective it’s was said on CNN today that rising rents due to people getting out of the US housing market was a major contributing factor so it looks like TTRTR maybe in for a windfall, we that is if he ignores the fall in his assets value.

I'm not sure why people leaving the housing market should necessarily cause higher rents. If people have less cash to spend on property there's less to spend on rents, too. People can move to cheaper accommodation, share, use less space, sell off the useless junk they have, etc.

Share this post


Link to post
Share on other sites

Rents were up 1.4% for the month and 2.9% for the year in April. April 2005 they rose 1.8%.

T&T

Hardly a factor affecting price indexes in the UK then?

Share this post


Link to post
Share on other sites

By means of adding some annecdotal evidence, I think that rents are on the fall. I am moving house again at the end of this month, and we are going into a 3 bedroom semi in suburbia (Wimbledon). The asking price was £1200 a month, and so we offered £1100. The offer got accepted straight away-estate agent rang us back within 5 minutes. The house had only recently come up for rent too, so we must have been one of the first to go and view it. The place that we are in currently was cheap too-£750 per month for a two bed flat on the borders of Wimbledon. From what I can see, rents are actually coming down. When I first moved out of home 5 years ago, I was paying £500 pcm for my room in a shared house. Now I am going to be paying about £360 pcm for my room in a shared house, in pretty much the same location.

Share this post


Link to post
Share on other sites

Looks like the Media blames anything for the fail of stock except the real factors like everyone wants out of the UDS$

im off to do some "Profit Giving" instead of "Profit Taking" :)

Edited by Justice

Share this post


Link to post
Share on other sites

One of the major factors concerning markets today, and being blamed for the current correction in the stock markets is the potential for rising inflation and from a US perspective it’s was said on CNN today that rising rents due to people getting out of the US housing market was a major contributing factor so it looks like TTRTR maybe in for a windfall, we that is if he ignores the fall in his assets value.

Meanwhile in France they have debating an new immigration bill 76% of French voters say that something needs to be done.

All these French frogs are obviously racists, all 60m of them and this has nothing to do with high unemployment, maintaining a way of life like eating frogs legs or the race riots from recent months and categorically nothing to do with a shortage of housing or effects on the infrastructure and even less to do with one in three babies born in France being a Muslim, no they are just racists and I’m sure the UK will welcome all them people the French kick out with open arms.

let me see ... French immigration Bill and its effect on the UK housing market.

So the French kick em all out and they all turn up here and buy or rent all the property. The End. I didn't see that correlation before, thanks for pointing it out.

Share this post


Link to post
Share on other sites

One of the major factors concerning markets today, and being blamed for the current correction in the stock markets is the potential for rising inflation and from a US perspective it’s was said on CNN today that rising rents due to people getting out of the US housing market was a major contributing factor so it looks like TTRTR maybe in for a windfall, we that is if he ignores the fall in his assets value.

What. Are all the americans moving over here? :D

Edited by geneer

Share this post


Link to post
Share on other sites

I have a property that is let out to a large company for 5 years, the rent review is up in June and the agent suggested putting it up 5% based on local market conditions.

As it happens I have kept it static, I have a fixed rate mortgage that is well covered by the rent and do not want to rock the boat, its a good company and 5yrs suits me fine.

However, I do think that as more and more people fail to even get a slim chance of joining the housing market then the pressure on the rental market can only be up. Supply and Demand are the cornerstone of any pricing and good rental properties are very hard to come by as BTL landlords are squeezed on quality v rental return when making aquisitions.

Share this post


Link to post
Share on other sites
Supply and Demand are the cornerstone of any pricing

And there's a vast oversupply of housing in most of the country. How are rents going to go up?

Share this post


Link to post
Share on other sites

However, I do think that as more and more people fail to even get a slim chance of joining the housing market then the pressure on the rental market can only be up. Supply and Demand are the cornerstone of any pricing and good rental properties are very hard to come by as BTL landlords are squeezed on quality v rental return when making aquisitions.

Hope so cos this will help drive inflation :-)

Share this post


Link to post
Share on other sites

However, I do think that as more and more people fail to even get a slim chance of joining the housing market then the pressure on the rental market can only be up. Supply and Demand are the cornerstone of any pricing and good rental properties are very hard to come by as BTL landlords are squeezed on quality v rental return when making aquisitions.

This thinking seems to be what BTL investment is based on. During the four years that I lived in London until end of 2004 rents did not go up at all. When I moved there it was hard to find a place to rent. When I left my landlord was struggling to find tenants.

In areas outside London rental prices are conditioned by what people can afford to pay, not by what landlords demand. It's obvious to me looking at my local paper that there is a massive surplus of places to rent. Anybody looking would be wise to bargain hard and try to drive down the rent.

Share this post


Link to post
Share on other sites

However, I do think that as more and more people fail to even get a slim chance of joining the housing market then the pressure on the rental market can only be up.

I think that is very unlikely. In fact the opposite is likely.

Two of my sisters have moved out of rented to live back at home (one with boyfriends parents) to save money.

As kids start to come out of uni with £30K debts (predicted average) I predict that it will become the norm for most to live at home until into their late 20's and even 30's or until they can afford to buy their own homes. As this will be the only way for them to meet debt repayments and save for a house.

As my anecdotal evidence shows - it's happening already.

Share this post


Link to post
Share on other sites

Anecdotal again - our rent has been static for the last two years and landlord doesn't seem to be putting it up next year (though we had expected he might as he's just put in double glazing). Contract runs out on 16th June and he hasn't mentioned a raise so far, so it's too late now... We've verbally signed up for another year so maybe he's just happy to avoid risking a gap?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

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.