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Debate House Prices
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Rents Falling - FT
Generali
Posts: 36,411 Forumite
I think I posted a few times about how I felt that rents would rise as FTBs can't afford to buy and then fall pretty soon after as economic hard times set in.
From the FT today
Where London leads today, the rest of the country will follow tomorrow.
From the FT today
Rents across London have started to fall by as much as 20 per cent as a glut of supply forces landlords to cut prices.
After a year of strong growth, rents on properties ranging from family houses in Kensington to two-bedroom apartments in Canary Wharf are now being slashed by hundreds of pounds a week, according to estate agents.
Where London leads today, the rest of the country will follow tomorrow.
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Comments
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Interesting to see what will happen in the south - if we can move to somewhere with more room for less rent, we will do it and continue to save for a deposit...MFW #185
Mortgage slowly being offset! £86,987 /58,742 virtual balance
Original mortgage free date 2037/ Now Nov 2034 and counting :T
YNAB lover
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wooo long may it last... or at least until june next yr when i move back towards London lol0
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EagerLearner wrote: »Interesting to see what will happen in the south - if we can move to somewhere with more room for less rent, we will do it and continue to save for a deposit...
Funny as it may seem, falling rents may be the saviour of the housing market in the end. If renters can save for a deposit to buy more quickly and margin BTLers are forced out of the market more quickly, things are likely to stabilise more quickly.
Don't get me wrong, I still see prices falling but hopefully this will mean a faster drop and so a bottom found more quickly.0 -
The oft-repeated statement "it's cheaper to buy than rent" may need revising.0
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You called it right - initially a rise in rents but then as money starts to get tight, a fall.
But how quickly will it be repeated across the country? A lot depends on local markets and how out of control house prices were.....--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
On that link that PasturesNew gave in her Margin Call thread, the EA said that rents in Coventry had already fallen by 20%.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
Funny as it may seem, falling rents may be the saviour of the housing market in the end. If renters can save for a deposit to buy more quickly and margin BTLers are forced out of the market more quickly, things are likely to stabilise more quickly.
Completely agree - hopefully it will stop so many BTL coming on board, and allow some sliver of chance for 1st timers to get a property.MFW #185
Mortgage slowly being offset! £86,987 /58,742 virtual balance
Original mortgage free date 2037/ Now Nov 2034 and counting :T
YNAB lover0 -
You called it right - initially a rise in rents but then as money starts to get tight, a fall.
But how quickly will it be repeated across the country? A lot depends on local markets and how out of control house prices were.....
Absolutely !!!!!! old thing.
There isn't a single UK housing market, just a series of strongly and losely interconnected local ones.0 -
The oft-repeated statement "it's cheaper to buy than rent" may need revising.
Think that old chestnut went out of date years ago, except for a few selected areas.
That is why I rent, after all.
Excellent news that rental prices are coming down. Generali just beat me to posting the link!0 -
EagerLearner wrote: »Completely agree - hopefully it will stop so many BTL coming on board, and allow some sliver of chance for 1st timers to get a property.
To be honest, I think the BTL market entrants dried up around the same time as the market turned. I suspect that they were in fact playing a large part in holding the market up until that point.
This is more good news for would-be FTBs as it should suppress future demand for housing from BTL investors and thus allow the market to bottom at a lower level.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0
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