Wednesday, May 24, 2006

Hometrack research specifies a need for £100bn spend

Firstrung: £100bn investment needed to meet future demand for private rented housing

New research by Hometrack, the housing information business, projects that demand for private rented housing is set to rise by 600,000 households by 2021. In order to meet this demand, new investment of over £100bn will be required. "Demographic changes are the primary driver of future demand for rented housing," comments the report author Richard Donnell, Director of Research at Hometrack.

Posted by Converted Lurker @ 01:46 AM (639 views)
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1. Devils Advocate. said...

Surely this will prop up house prices. If rented property is going to be so sought after more BTL will come to the market and invest. If there is to be such a shortage BTL will hold on through the rough patch and wait for the rising rental income that will come from a shortage of supply.

Wednesday, May 24, 2006 09:28AM Report Comment

2. Devils Advocate. said...

This article make me very angry. It mentions that the introduction of REITS will draw in more investment to buy properties that can be rented to those people who can't afford to buy. Why are they not commenting on the fact that those people can't afford to buy. Introducing more money into the market will only increase demand and force prices even higher.

I think the whole Investment Trust, property investment issue is just going to exacerbate the problem which has been partly caused by every man and his dog buying a property to rent.

Wednesday, May 24, 2006 09:36AM Report Comment

3. uncle tom said...

There is nothing intrinsically efficient about renting. Void periods and management costs negate the saving from not buying a share of the equity.

If people can't afford to buy, they can't afford to pay an economic rent either.

Being a landlord only adds up if house prices exceed the rate of wage growth forever..

..which they can't - as any fule no!

Wednesday, May 24, 2006 10:23AM Report Comment

4. Click said...

As the saying goes the rich get richer and the poor get poorer, and the chance for FTB to get on the ladder will be even harder, so im banking on a HPC, the sooner the better,

Wednesday, May 24, 2006 11:08AM Report Comment

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6. Beaker said...

Hometrack says people need to spend a further £100bn buying houses. Say no more.

Wednesday, May 24, 2006 12:06PM Report Comment

7. Followthebear said...

What I can't understand is the "very few can afford to buy because of high prices" notion. Surely if fewer are buying then prices will come down, and BTL as of today is a waste of time. I remember about twelve years ago talk of "will house prices ever recover?!"

Wednesday, May 24, 2006 01:15PM Report Comment

8. Bidin'matime said...

I would go further, Tom – Mrs T knew very well the economics of being a landlord when she sold off the council estates – people look after their owns homes better, so keeping maintenance costs down. People will spend hours tending their own homes / gardens with no charge, again keeping maintenance costs down. Perhaps a bit long term for the average BTL, but relevant to larger investors is the fact that having a large number of rented properties in an area brings down the value of the properties in the area generally (mainly due to the above maintenance issues). The trouble is that these are medium to long-term issues, that will not filter through to the BTL market until every other man in the pub is moaning about having to go and fix his BTL roof/windows/plumbing etc...

Wednesday, May 24, 2006 01:24PM Report Comment

9. Inbreda said...

Someone should start upVITrack to statistically predict the increase in bullsh1t that comes from the VIs.

Wednesday, May 24, 2006 01:50PM Report Comment

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