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

Rents Unlikely To Rise Before Next Year

Recommended Posts

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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites

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

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.

  • 399 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.