Tuesday, Dec 22, 2009

No more accidental landlords?

RICS: Rents set to start rising

Surveyors expect to see rent rises in the New Year as the number of rental properties coming onto the market fell for the first time since January 2008, says the latest RICS Lettings Survey. The recent pick up in the housing market seems to have led to a drop off in the number of rental properties, particularly houses, being made available and as a result surveyor optimism has increased for the first time since July 2008. 22 percent more surveyors expect rents to rise rather than fall in the next three months. The drop off in supply is the main driver for the more positive sentiment, with new instructions reaching their lowest levels in the surveys history (since 1998).

Posted by drewster @ 07:13 AM (1925 views)
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12 Comments

1. wdbeast said...

RICS - Oh please cash rich renters, you must buy a house now because we need to sucker the last of the cash rich back into home ownership or some more of our members will not be able to go skiing this year.

Me - Bugg3r off!

Tuesday, December 22, 2009 07:58AM Report Comment
 

2. Happyrenting said...

"2 percent more surveyors expect rents to rise rather than fall in the next three months... The drop off in supply is the main driver for the more positive sentiment"
Brilliant! So not only are rising house prices a good thing, now rent going up is seen as "positive". Perhaps they should start charging us more for food, petrol, insurance etc... Oh, sorry, that's already started!

Tuesday, December 22, 2009 08:02AM Report Comment
 

3. paul said...

RICS uses the same tried and trusted formula as the BBC. It goes like this:

If rental supply goes down, rental prices go up = landlords are in the pink!
If rental demand goes down, renters must be buying, house prices go up = landlords are in the pink!

It never works like that of course, but judicious non-use of statistics in these articles makes that reality a footnote.

Tuesday, December 22, 2009 08:19AM Report Comment
 

4. will said...

I managed a 15 % discount at the time of renting my current property having been previously told by the agents that they didn't do discounts on rentals. There a currently plenty of rentals (and houses for sale come to that) available and the vast majority have been listed for a veeery loooong time. I feel in a strong position at the moment.

Tuesday, December 22, 2009 09:04AM Report Comment
 

5. inbreda said...

accidental landlords probably trying to empty the property before marketing - so I think we will start to see a flood of properties for sale. Also, when interest rates rise, these accidental landlords will struggle with the mortgage when they don't even have a rental income. They will be the first forced sellers.

Tuesday, December 22, 2009 09:25AM Report Comment
 

6. quiet guy said...

Let's see now.

-> Rents might rise due to supply and demand factors (no mention of the role of cheap money in the past and credit stress today.)
-> Interest rates might rise.

My prediction is that neither will do very much in 2010 but interest rates is the factor with most growth potential in the medium trem.

Tuesday, December 22, 2009 09:55AM Report Comment
 

7. it_is_going_with_a_bang said...

The only thing that is keeping property prices pegged anywhere near where they are is interest rates at 0.5% - nothing else matters.
Rents and market conditions vary from area to area so this guess work from RICS - just as their valuations are.

At this moment in time it merely feels like the calm before the storm. The only thing thats going up is government debt.
That will have to be stopped and interest rates will have to go up. Lets see where the market is then.

Tuesday, December 22, 2009 09:55AM Report Comment
 

8. mark wadsworth said...

Having been horribly wrong with my gleeful predictions of a 40% house price fall, let me restate the basic rule that rents are the most stable variable in the housing market (they are the Maypol around which everything else dances) as they tend to go up in line with wages, there are no "bubbles" or "collapses" in rents (apart from a few localised things, like discovering oil or a large manufacturer going bankrupt etc).

Tuesday, December 22, 2009 10:49AM Report Comment
 

9. paul said...

"rents set to rise" - what exactly does that mean? Are they rising or not? Or not it seems, and RICS are desperately trying to make it so with this claptrap.

Tuesday, December 22, 2009 10:50AM Report Comment
 

10. ontheotherhand said...

"the downward pressure on rents appears to be easing. The latest reading for past rents, although still negative, is the least so since the May to July period of 2008. Meanwhile, the forward looking rent expectations series rebounded into positive territory."

Look at the chart on page 2 of the report for type of tenant. "Private" has fallen from 84% of tenants in April 08 to 68% and are being replaced by Students up from 2% to 9% and Social up from 6% to 11% in the same period.

So rents have fallen over the last year and students and unemployed are the new tenants? Great.

"Interestingly, the proportion of landlords in the survey considering selling their property at the expiry of a tenant lease rose to its highest level in six quarters. The jump to 3.2% compares with a reading of 1.8% previously and a low of 0.2% in the three months to January 2009"

What effect will the increase to 3.2% of buy-to-lets selling do to house prices?

Tuesday, December 22, 2009 10:51AM Report Comment
 

11. Property For Sale said...

It's true that these present days,the number of rental properties coming up onto the market.

Wednesday, December 23, 2009 05:53AM Report Comment
 

12. Property For Sale said...

It's true that these present days,the number of rental properties coming up onto the market.

Wednesday, December 23, 2009 05:54AM Report Comment
 

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