Rents Falling - FT

GDB2222

I would just point out, in case it isn't obvious, that the FT article is about top of the range properties. Most rents in London are £200 per week, not £2,000. Also, Savills and Knight Frank, the two agents quoted are operating right at the top end of the rentals market. I'm letting out flats in the suburbs at the £200 end of the spectrum, and there is no reduction in rents that I have noticed.

beingjdc

Anecdotally if you want something outside the top end, here in Zone 2 south-east a 2-bed 2-bath flat near us (slightly smaller and further from the tube) has been reduced from 300 a week to 265 and now 249.

lynzpower

jdc is that greenwich - or somewhere else?

beingjdc

South Bermondsey.

lynzpower

ooh really.

I know the area reasonably well, I remember trying to flog a flat in the area there last year and was looking at comparables. Personally, I dont want to sound rude as you live there but I can think of much nicer areas to spend that sort of money.

Are they new build, the flat I tried to sell had unpteen up for rent/ buy from flippers and investors, and it was very crowded on the drives with the amount of signage.

beingjdc

Oh it's a polluted chav-riddled hellhole, I won't be offended by you saying it, but it's eight minutes from my office by tube, and relatively cheap by central london standards (we pay 285 a week and are closer to the tube end - north side of Southwark Park Road).

I'd move if I won the lottery, but at the moment living here is saving £1000 a month to go into my deposit when prices have come down some more. I don't really see anywhere much nicer that wouldn't be a great deal further from my office - the other side of Greenwich, but then you're into mainline rail to a station territory.

I think the other ones are newish build, yes. Not tempted to swap (except for the whole council tax issue, I bet they aren't in Band F!)

http://www.rightmove.co.uk/viewdetails-21616016.rsp?pa_n=2&tr_t=rent

tomstickland

I think it's time that the doom mongers stopped spouting their rubbish on thie forum and we based our opinions on real facts. Give me 10 minutes, I need to go and have a look at the Express.

BiggaThanBen

beingjdc wrote: »

http://www.rightmove.co.uk/viewdetails-21616016.rsp?pa_n=2&tr_t=rent

"luxury apartment" !? Haven't they put wrong pictures here ?

IveSeenTheLight

!!!!!!? wrote: »

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.....

I increased a 4 bed rental from 22% in Jan 2007.
Now there is a 3 bed across the street that is marketed for the same price.
looking at the market at the moment, my property is renting 27% under the market rate, while 18 months ago it was only 9% under the market rate.

Rents are still going up in Aberdeen

IveSeenTheLight

EagerLearner wrote: »

hardly anyone can meet the current criteria if the average property price is still to high for the 3.5 ratio.

I think the 3.5 ratio is outdated in todays market of multiple income properties.
The 3.5 ratio is one that the banks put in place as the level of risk they were willing to take
I posted before my belief that maybe 4.5 is a more realistic ratio

http://forums.moneysavingexpert.com/showpost.html?p=12872531&postcount=34