MSE News: High demand could push rental prices up

Didn't LSL state that rents have fallen two months in a row?

Also we have the large cuts to housing benefit starting next month which will reduce rents further. Wage freezes, interest rate rises with rising unemployment will have a further downwards effect.

Gosh, rents dip marginally in December and January. The two weakest months for letting..Shocker.

Rents are going nowhere but upwards this year. Massive rent increases coming for sure, given the incredible (and worsening) shortage of houses in the UK. Of course mortgage rationing will only make this situation worse, as millions of people are locked out of the housing market.

geoffky wrote: »

Nice try but looks like your attempt has been seen for what it is. House prices are falling a hell of a lot faster than any rents can rise and the trend is set.

Wrong again geoffky....

Prices UP on three of the four main indices this month, and it's not even time for the spring bounce yet.

All the leading indicators pointing towards rising prices, from the housebuilder share index you hpc lot are so fond of (up 50% since Dec), to the ratio of enquiries to stock at agents.

House prices may not soar this year, but they won't crash either. And the inevitable next boom is building strength every day we kick the can down the road, as shortage of housing worsens.

It's a simple matter of supply and demand.

Miles Shipside, director of Rightmove, says: "Letting agents in many areas are reporting an insatiable demand, with prospective tenants coming from all backgrounds and requiring all types of property.

"Those traditional tenants that are leaving the family nest are increasingly being joined by those that can't sell or get a mortgage to trade up, putting unprecedented pressure on the rental sector to provide homes to rent on most rungs of the property ladder.

"Such demand inevitably creates supply shortages and pushes up the cost of the rented roof over the tenant's head."

The situation is being made worse by a fall in the number of homes that are available to rent, with Rightmove reporting an 18% drop in the number of rental properties on its site compared with a year ago.

This is record breaking stuff mate, rental supply down 18% in just one year, new building at the lowest level since 1923, and population growing at the fastest rate in a generation.

The housing shortage is worsening by 100,000 houses A YEAR, and we're just sowing the seeds of the next boom.....

Rents will rise, house prices will inevitably follow as investment capital gets drawn in chasing yield, and mortgage rationing will continue to lock out FTB's.

The perfect storm.

James_N wrote: »

There are too few quality houses for rent and too many people wanting to rent them.

Prices for good quality accommodation are only going one way.

Absolutely correct.

brit1234 wrote: »

I guess there may be more pressure on rent as more and more buy to let landlords getrepossessed. As house prices fall and interest rates go up landlords will ditch their properties back into the market.

:rotfl:

As more landlord properties hit the market more first time buyers won't have to rent any more and buy these up.

Except of course, that it isn't working that way at all.

The number of BTL mortgages issued actually ROSE by 7% last year, the only category of lending to increase, as rising rental yields attracted investment capital.

BTL's are replacing FTB's.....

The shortage of housing is worsening.

And house prices and rents are currently rising.