RICS: Rents Will Rise Next Year

ruggedtoast

http://www.findaproperty.com/media/rental-index/FindaProperty_Rental_Index_Dec_09.pdf

Following six months of rising rental values, asking rents fell in December
Rents fell by 1.3% to £820pcm in December – a reversal of six months of rising rents and taking levels back to the beginning of the upturn in May
Rents are 3% (£25pcm) lower than a year ago (£845pcm)
The supply of properties available to rent increased in December by 1.7% following a period of falling stock levels
Properties now let within 56 days, a day longer than November’s 55 days. This is still considerably shorter than the peak of 71 days in January
Gross yields fall to low of 4.52%
The regional outlook is varied with four of the eleven regions reporting rises and the remainder falls. The biggest increase was in the East Midlands (2.3%) while Yorkshire and the Humber suffered the biggest decline in rental values in December (-8.8%)

carolt

Thanks, ruggedtoast, I've just given this a thread of its own, as it deserved.

Graham_Devon

chucky wrote: »

you highlighted it, made a statement...


but then proved that you didn't understand (again) by then saying...



and finally don't flatter yourself sunshine - i know it's not your fault that you're slow and don't understand things... :rolleyes:

You now seem so desperate you quote 2 seperate posts, editing out parts of quotes to make it look like something different. You even do it on the very same page the 2 posts sit, and everyone can see that I was answering a different question. But that doesn't stop you in your desperation in trying to make it look different.

The only thing I don't understand right now, is your mindset.

chucky

ruggedtoast wrote: »

http://www.findaproperty.com/media/rental-index/FindaProperty_Rental_Index_Dec_09.pdf

Top bombing Mr Toast!!

IveSeenTheLight

HAMISH_MCTAVISH wrote: »

RICS forecast house prices to rise in 2010, and now rents will be rising too.....

I rent out properties in your local area Hamish and I do not envisage increasing my rents next year, although I possibly could do if I wanted to as they are currently under the market average.

I rent under the market average to ensure no void periods, yet still achieve a return that is helping to rapidly repay the mortgages

ess0two

carolt wrote: »

Does your leg hurt, Graham?

Probably not half as much as his head trying to fathom out whats going on.

AGBAGB

I'm same as IveSeenTheLight. Avoiding voids and having satisfied tenants with slightly below market rents.

I normally only put rents up with a change of tenants every two to three years. So a drop this year and a rise next is imaterial.

When predicted as going up, it's worth rembembering that it's just the properties that are being marketed in that time period. Probably less than 1% of market.

This years influx of "Accidental LL" and oversupply of undesireable new build flats will have depressed rents. A rise next year will be rents normalising.

DaddyBear

Wow, another RICS survey. Not at all biased and always right.
They fail to take into account Rrsing unemoyment and the
inevitable reduction in housing allowance and benefits.
The number of properties for rent may be falling, but so is the ability of renters to pay rent.

AGBAGB

inevitable reduction in housing allowance and benefits.

When? are predicting widescale deflation?

IveSeenTheLight

DaddyBear wrote: »

Wow, another RICS survey. Not at all biased and always right.
They fail to take into account Rrsing unemoyment and the
inevitable reduction in housing allowance and benefits.
The number of properties for rent may be falling, but so is the ability of renters to pay rent.

I saw a prediction somewhere that unemployment would peak next year at 2.8 million.
That's only 300,000 from where we are now (albeit unfortunately).

Unemployment is given on here as a reason for house price decreases, presumably as those made unemployed wont be able to afford their mortgage.
Now it's used for rents to lower.
Lets presume a 50 / 50 split between owners and renters, it's still a very small percentage of the workforce and of home owners / renters, so not so sure it will make a difference.

When you also consider the government subsidise social renting of private accomodation and they also have the HMS and SMI schemes for home owners, where is the drive for lower rents and prices going to come from the unemployed?

SOunds more like your post is of hope rather than reality