Rents to rise by 10% to 15% in both 2008 and 2009 - ARLA

neverdespairgirl

rozzy wrote: »

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?

No, none of those will be an option for everyone. But they will be an option for some people.

For example, OH, our son, and I live in a 3 bed flat. If we found that too expensive, we could downsize to a 2 bed, or move to a cheaper location.

barnaby-bear

neverdespairgirl wrote: »

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.

I think our rental market in the last 6 months is being skewed up by more STRs and people unable to sell their homes renting them out so more larger/family style homes available to rent which command a bigger rent and were simply not on the rental market a few years back.... the two bed flats haven't gone up...

mystic_trev

I don't disagree with ARLA that rents will rise, but what's all this about?

Professor Ball forecasts rents to rise by 10% to 15% in both 2008 and 2009. Despite this, he says that the modern Private Rented Sector is helping to stabilise housing because it accommodates those who, by this stage in the housing cycle, would be over-stretched borrowers with rising negative equity. A re-run of the 1990s, when negative equity prolonged the housing market recession and blighted the lives of many is less likely to occur in this downswing as a result.

Commented Ian Potter, ARLA's Head of Operations, "It was as a result of the appalling effects on young owner occupiers last time that ARLA took the initiative and launched Buy to Let to re-build and re-finance the Private Rented Sector and to mitigate the dreadful social consequences of housing boom and bust. It has proved to be remarkably successful."

Sounds like total bollux to me! Anyone else care to comment? :think:

Premier_2

tbs624 wrote: »

"...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.

Last months report by ARLA suggesting rent values had fallen by 7% for houses and 9% for flats was based purely on a "survey of ARLA’s member letting agents"

Perhaps you've hit the nail on the head as to why it was so contrary to many other reports.

LittleMissAspie

I can't see them rising by that much. There's people renting their houses out because they can't sell, people can downsize or move back home, or share more. If it is totally inevitable that they pay 10% more rent then that's going to accelerate us into recession as living costs are going through the roof and people everywhere are cutting down on luxuries.

Austin_Allegro

Now that the HPI bandwagon has come juddering to a halt, people seem to think they can just inflate rents as well, in order to cover their mortgage costs. Well it ain't gonna happen, because a. rental supply will increase as more and more vendors rent their properties out because they are not selling or rent out spare rooms because they can't afford their mortgages, and b. people won't be able to afford more rent anyway due to other rising costs.

There will be an initial spike in rents as landlords try it on, but I don't think it will last.

Woby_Tide

is this the start of the denial stage in the rental market

"Of course, it's different this time....."

Gav12

According to this report the letting market is booming

http://www.itvlocal.com/wales/news/?player=WAL_News_15&void=212055

brightonman123

this could drive house prices down further, as tenants fall behind on rents, get evicted or just move somewhere cheaper, then the owners fall behind on mortgage (no rental income), house get repossessed and auctioned off..