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RICS: Rents Will Rise Next Year
HAMISH_MCTAVISH
Posts: 28,592 Forumite
Published 02 December 2009
RICS publishes the results of its residential lettings survey for October (3rd quarter) 2009.
Surveyors expect to see rent rises in the New Year as the number of rental properties coming onto the market fell for the first time since January 2008, says the latest RICS Lettings Survey.
The recent pick up in the housing market seems to have led to drop off in the number of rental properties, particularly houses, being made available and as a result surveyor optimism has increased for the first time since July 2008. 22 percent more surveyors expect rents to rise rather than fall in the next three months.
The drop off in supply is the main driver for the more positive sentiment, with new instructions reaching their lowest levels in the surveys history (1998).
A net balance of 11 percent of surveyors are seeing the number of new instructions coming onto the market falling rather than rising.
This is in stark contrast to levels seen late last year when the housing market was still suffering from falling prices and many would-be sellers were turning to the lettings market when their houses failed to sell.
A double whammy for the housing bears.
RICS forecast house prices to rise in 2010, and now rents will be rising too..... Whilst interest rates and returns on savings are at an all time low.
Oh Dear.....
So if supply is still tight on sale properties, and now rental instructions drop off to the lowest level since the survey began....... Where are all the houses going?
Couldn't possibly be that the stock of both is now declining due to 250,000 new households being formed every year, but only 80,000 new houses being built.... Leading to supply tightness and raising prices and rents.
No, that would make far too much sense.:rolleyes:
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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HAMISH_MCTAVISH wrote: »Couldn't possibly be that the stock of both is now declining due to 250,000 new households being formed every year, but only 80,000 new houses being built.... Leading to supply tightness and raising prices and rents.
:rolleyes:
I'm glad to see human immortality has finally arrived. No household ever 'ends' due to death.
Wohoo.. I'm going to live forever!0 -
Personally I think Rents will increase over the next 5 Years +
Pet theory.
Many baby boomers will not have the equity to downsize and retire so will end up selling and renting. Retiring with a lot of money in the bank but paying rent for the rest of their retirement.
Most baby boomers live in 3 bed semis etc so in reality many will not be able to downsize (bunglows are nearly the same price) in their area and will not want to move area because of family etc. Also they will want to know travel routes etc, so learning a new area at over 65 will be a no, no for many.
It will be interesting to find out how this plays out but I know of a few now looking to do this as buying another property is not really an option.0 -
Personally I think Rents will increase over the next 5 Years +
Pet theory.
Many baby boomers will not have the equity to downsize and retire so will end up selling and renting. Retiring with a lot of money in the bank but paying rent for the rest of their retirement.
Most baby boomers live in 3 bed semis etc so in reality many will not be able to downsize (bunglows are nearly the same price) in their area and will not want to move area because of family etc. Also they will want to know travel routes etc, so learning a new area at over 65 will be a no, no for many.
It will be interesting to find out how this plays out but I know of a few now looking to do this as buying another property is not really an option.
I will party agree.
As with most things, when there is a crisis, there is a dash to the average.
IE most useful properties rents will increase, when the less useful will decrease.
This has been going on for the last 2 years, ie those 2 bed flats and 4 bed detached are much cheaper. However the middle of the road 3 bed semi has got more expensive. Hence I dont beleive rents will increase on average, but rents for properties what people want, will.0 -
HAMISH_MCTAVISH wrote: »A double whammy for the housing bears.
RICS forecast house prices to rise in 2010, and now rents will be rising too..... Whilst interest rates and returns on savings are at an all time low.
Oh Dear.....
So if supply is still tight on sale properties, and now rental instructions drop off to the lowest level since the survey began....... Where are all the houses going?
Couldn't possibly be that the stock of both is now declining due to 250,000 new households being formed every year, but only 80,000 new houses being built.... Leading to supply tightness and raising prices and rents.
No, that would make far too much sense.:rolleyes:
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I'm glad to see human immortality has finally arrived. No household ever 'ends' due to death.
Wohoo.. I'm going to live forever!
No, thats 250,000 ADDITIONAL households a year being formed.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Personally I think Rents will increase over the next 5 Years +
Pet theory.
Many baby boomers will not have the equity to downsize and retire so will end up selling and renting. Retiring with a lot of money in the bank but paying rent for the rest of their retirement.
Most baby boomers live in 3 bed semis etc so in reality many will not be able to downsize (bunglows are nearly the same price) in their area and will not want to move area because of family etc. Also they will want to know travel routes etc, so learning a new area at over 65 will be a no, no for many.
It will be interesting to find out how this plays out but I know of a few now looking to do this as buying another property is not really an option.
That's OK
The "property is my pension" brigade can get to put their words into action.
Job done and cheers all round.."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
HAMISH_MCTAVISH wrote: »No, thats 250,000 ADDITIONAL households a year being formed.
Link please!0 -
I just wanted to highlight this part of the actual story...
3 months. That is all they are talking about. 3 little months.22 percent more surveyors expect rents to rise rather than fall in the next three months.
A little perspective is needed here me thinks instead of implying something different as this thread seems to have done, i..e they will rise in 2010 and all this fluff about supply and demand, again. No, they say they think they will rise in a couple of months of 2010. No predictions for the other 3 qurters of the year.0 -
Graham_Devon wrote: »3 months. That is all they are talking about. 3 little months.
A little perspective is needed here me thinks.
So what do you think will happen after that 3 months?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
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