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Rents to rise by 10% to 15% in both 2008 and 2009 - ARLA
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Premier_2
Posts: 15,141 Forumite
Contrary to last months report which ARLA published suggesting soaring rent levels are just a myth, they have this month published a report more aligned to the findings of The Royal Institution of Chartered Surveyors and Paragon
http://www.arla.co.uk/news/140708.htm...The report, Part I of "The Modern UK Housing Market - Origins and Prospects" by Professor Michael Ball, Professor of Urban and Property Economics at Reading University, forms part of a wider study into residential housing commissioned by the National Federation of Property Professionals, to be published in the Autumn. This will cover the market sectors of both its residential housing divisions, ARLA and the NAEA.
Professor Ball forecasts rents to rise by 10% to 15% in both 2008 and 2009...
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Well, here's the thing: people can't afford it. So they won't.0
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PasturesNew wrote: »Well, here's the thing: people can't afford it. So they won't.
So if its not a good time to buy and not a good time to rent then what do people do? Choose the homeless shelter?0 -
PasturesNew wrote: »Well, here's the thing: people can't afford it. So they won't.
They don't have to afford it - LHA does....0 -
So if its not a good time to buy and not a good time to rent then what do people do? Choose the homeless shelter?
It's not quite as simple as that.
People need to live somewhere. But they can rent a smaller place, or one furhter from town. They might house-share, or move in with family....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
"Professor Ball forecasts rents to rise by 10% to 15% in both 2008 and 2009..."
Crystal ball............;)
Rather than just having links to pieces of journalism - let's have the actual figures that ARLA (letting agents' body), the RICS (surveyors) and Paragon (providers of BTL mortgages) and Prof Ball are using.
Some of ARLAs hyped up reports are based on pitifully small responses from amongst their own members and are evn less representative than they make out given that the majority of Letting Agents are not actually members of ARLA.0 -
neverdespairgirl wrote: »It's not quite as simple as that.
People need to live somewhere. But they can rent a smaller place, or one furhter from town. They might house-share, or move in with family.
I live somewhere with an extreme physical shortage of accommodation... what's happened over the last few years is that 2 bed houses used to be rented individuals, then by couples and now two couples sharing a two bed house is quite common and the LLs have pushed up the rents but the cost per head has gone down. Shared houses used to always have a lounge now it's usually an extra bedroom so the rents for the house has gone up but per capita not so much. If there's demand enough as I suspect maybe the case in parts of London and round here rising rents may not necessarily mean rising costs per salaried individual.0 -
Ah bless, I imagine their members went a bit mad after the last set of reports, then, so they've had to say that while it isn't happening now, they think it will happen in the future.
It's funny, the fishmonger round the corner thinks he sells delicious fresh fish, and the estate agent up the road thinks it's a great time to buy. Next thing we know the British Retail Consortium will say it's a good time to cut interest rates...Hurrah, now I have more thankings than postings, cheers everyone!0 -
neverdespairgirl wrote: »It's not quite as simple as that.
People need to live somewhere. But they can rent a smaller place, or one furhter from town. They might house-share, or move in with family.
Exactly the response I was hoping for. I am in neither group with regards to renting or buying I say each to their own. I am just glad that it has been highlighted that people who rent will too be affected by the recession, your spot on people will have to compromise by either taking the hit financially or get somewhere smaller/house share etc.
Some of the above though may not be a possibility say for a family of 5?
There are endless of posts people being told they are stupid for considering to buy, but at the of end of the day renting isnt for everyone, some people are just after a home and not an investment. Thanks OP threads like this will help keep a balanced forum.0 -
Exactly the response I was hoping for. I am in neither group with regards to renting or buying I say each to their own. I am just glad that it has been highlighted that people who rent will too be affected by the recession, your spot on people will have to compromise by either taking the hit financially or get somewhere smaller/house share etc.
I think there's going to be more instability in the rental sector, BTLers panic selling, putting stuff on the market and expecting tenants to stomach viewings, LLs avoiding repairs because of cash flow issues, trying to bump up rents, serving notice in belief may re-let, trying to hang on to deposits to cover costs, reposessions (including where no permission to let nightmares)... all of which will affect those renting (moving every 6 months gets expensive and tiresome) but there may also be some real rental bargians as any rent better than none for some LLs...
Some of the recent rises I'm sure are an effect of the LHA coming in and LLs setting rentals accordingly in that sector.0 -
barnaby-bear wrote: »I live somewhere with an extreme physical shortage of accommodation...
As I remember, you are in Cambridge?
Thanks for the examples - I think people are often prepared to compromise more in terms of rent than in terms of buying....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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