Friday, Jun 21, 2013

Average rental yield falls to 5.3% Pace of rent rises slows as more tenants buy

The increase in the cost of renting slowed in May helped by a rise in activity in the housing market that meant as more people purchased homes the supply of rental property increased.

Posted by ben @ 12:23 PM (2166 views)
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1. mark wadsworth said...

I also had you down as a Home-Owner-Ist propagandist, and I see that you have mastered Homey maths...

If tenants buy the homes they live in, that leads to an INCREASE in the supply of rental property.

Nice one.

Friday, June 21, 2013 02:32PM Report Comment

2. khards said...

"The NewBuy and Help to Buy schemes have also been introduced to help people get on the property ladder if they have smaller deposits. "

> That implies that the FTB's are buying new homes aka supply is increasing (they are making the Monopoly board bigger)

"With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable - which will keep demand for rented accommodation high."

> Surely high inflation and low wage grownt puts downward pressure on rents at there is less income available to pay rents from.

Friday, June 21, 2013 03:02PM Report Comment

3. mark wadsworth said...

Khards, yes, the whole thing is a smorgasbord of Homey maths and logic.

Friday, June 21, 2013 03:38PM Report Comment

4. reticent said...

"Ben Salisbury is the Editor of Ben is passionate about saving money, finding the best products and advice and encouraging people to make sure they have the best possible deals in all areas of personal finance. As a former accountant he understands the numbers behind the headlines."

Accountants don't study supply and demand.

Friday, June 21, 2013 04:09PM Report Comment

5. hpwatcher said...

load of junk

Friday, June 21, 2013 09:55PM Report Comment

6. mark wadsworth said...

Reticent: "Accountants don't study supply and demand"

Some partners in accounting firms have a vague idea, but it is quite terrifying how little all of my colleagues know about the wider economy or the impacts of all these little rules pushing people one way or another.

A lot of them do their units on micro and macro economics and pass the exam, and on that level they understand it, but then in the real world they completely forget about it and imagine that these basic laws no longer apply. Some accountants spend their whole lives dreaming up schemes to avoid inheritance tax, that's all they know about, but what they don't realise is that e.g. inheritance tax raises slightly less money for the government than the TV licence fee.

Saturday, June 22, 2013 07:18PM Report Comment

7. reticent said...

Haha, I forgot you are an accountant.

My understanding is that the real distinction between accountants and economists is to do with the former ignoring opportunity costs, which somewhat explains your anecdotal experience.

Even if they understand micro/macro, supply/demand, they're not prone to thinking through foregone alternatives, perverse incentives and how reforms might influence individual behaviour on both a micro and macro level. Their motivation is to save their clients money by gaming the system, not to improve it.

I suppose you're a diamond in the rough, MW.

Tuesday, June 25, 2013 09:28PM Report Comment

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