Nationalist Posted July 23, 2008 Share Posted July 23, 2008 Financial Times Sir, Michael Ball predicts, in his study for the Association of Letting Agents, a rise in rents based on a shortage of supply and rising demand from buyers struggling to get on the housing ladder (“Demand likely to drive up rents”, July 15).I don’t know what data Prof Ball used but currently there is an oversupply of properties to rent in most areas and in some city centres there are large numbers of one- and two-bedroom flats for which there are no buyers or renters. Most first-time buyers unable to get on the first rung of the property ladder are living in rented accommodation and in some cases are considering downsizing to shared occupancy to reduce rental costs. So this group should not be seen as significant in driving up demand or rents. Rents may fall in the short term, but it would be very unwise to plan for any increase in rents before the middle of 2009 and even then the situation might be worse than now. Michael Conlon, London W14 9PS, UK I wonder where he gets the fact that some renters are considering downsizing to shared accommodation to save money? And I suspect a lot of FTBs-to-be actually live with their parents until they buy so don't "consume" housing. Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted July 23, 2008 Share Posted July 23, 2008 I wonder where he gets the fact that some renters are considering downsizing to shared accommodation to save money? It's a logical deduction from the fact that people are having to 'tighten their belts'. I'd expect to see an increase in people sharing to save money on rent, and an increase in people taking in lodgers to pay the mortgage. Both of these trends will depress demand in the BTL rental sector. Quote Link to comment Share on other sites More sharing options...
VacantPossession Posted July 23, 2008 Share Posted July 23, 2008 Sir Michael Ball predicts, in his study for the Association of Letting Agents, a rise in rents based on a shortage of supply and rising demand from buyers struggling to get on the housing ladder (“Demand likely to drive up rents”, July 15 Ah, look. More spin. St Michael Ball predicts eh? In his "study" FOR the Association of Letting Agents? And the Financial Times is printing this as FACT? A "study" for a vested interest is NOT a study, it is an EXCERCISE in statistical chicanery to try to prove the unprovable. Rents CANNOT rise in a flooded market. We HAVE a flooded market. VP Quote Link to comment Share on other sites More sharing options...
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