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Debate House Prices


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Rents Rising: + 3.2% in a year......

Would-be newcomers to the world of property are being confronted with an extra challenge before they try to buy their first home — a shrinking and more expensive rental market.

The supply of homes available to rent has started to dry up, the Royal Institution of Chartered Surveyors said, just as demand for them has begun to rise. As a result, the cost of renting is rising, bad news for those saving for a deposit to buy a property.

Sixteen per cent more surveyors reported a rise in demand for property lets rather than a fall in the three months to January, RICS said, while 23 per cent more surveyors reported a fall in new instructions from landlords.

“It is becoming clear that movements in the housing market are affecting lettings,” Jeremy Leaf, of RICS, said. “The RICS housing survey has seen a steady increase in the number of new instructions coming on to the market, while the number of properties available to rent has decreased.

This is a clear sign that the accidental landlords [property owners who chose to let their second homes during the downturn] are returning to the sales market. If demand remains strong, which is likely, as many first-time buyers are still finding themselves priced out of the housing market, then rents should continue to rise as would-be tenants compete for fewer properties.” The society said that the findings marked a significant shift in sentiment. Six months ago 58 per cent more surveyors were reporting that rents were falling.



Figures from LSL Property Services, one of the biggest estate agencies in Britain, showed that monthly rents rose 0.3 per cent in February to an average of £658, 3.2 per cent higher than a year ago and roughly in line with inflation.
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article7063221.ece

Interesting.....
“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”
«13

Comments

  • boomerangs
    boomerangs Posts: 284 Forumite
    Interesting.....


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  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Just about keeping up with inflation.

    Wish I hadn't had missed that lucrative boat.

    Anyway... moving on to business.
    This is a clear sign that the accidental landlords [property owners who chose to let their second homes during the downturn] are returning to the sales market. If demand remains strong, which is likely, as many first-time buyers are still finding themselves priced out of the housing market, then rents should continue to rise as would-be tenants compete for fewer properties.” The society said that the findings marked a significant shift in sentiment. Six months ago 58 per cent more surveyors were reporting that rents were falling.

    Which means more houses are coming on to the market for sale. Which is a bu*ger for your low supply = prices up equation isn't it?
  • What is interesting??
    Not Again
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 17 March 2010 at 12:12AM
    Just about keeping up with inflation.

    Wish I hadn't had missed that lucrative boat.

    Anyway... moving on to business.



    Which means more houses are coming on to the market for sale. Which is a bu*ger for your low supply = prices up equation isn't it?
    that ASCII face palm would be perfect for this post...

    got to love the ignorance of not understanding things...

    oh look there's a shiny thing :wall:
  • nembot
    nembot Posts: 1,234 Forumite
    I believe rent prices dropped in the most part, throughout last year.

    Maybe I live in a odd part of the Country, which bucks the trend. :cool:
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    boomerangs wrote: »
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    Not that bloody ascii picture again

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    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • Arch-Angel
    Arch-Angel Posts: 184 Forumite
    chucky wrote: »
    that ASCII face palm would be perfect for this post...

    got to love the ignorance of not understanding things...

    oh look there's a shiny thing :wall:

    OK - I'll bite

    There are X renters and Y properties for sale currently. But assuming that this is true:
    This is a clear sign that the accidental landlords [property owners who chose to let their second homes during the downturn] are returning to the sales market

    This means that the amount of property of sale will increase to Y + n. Of course, there will be less houses for rent = less supply = higher rent (using the simple arguments that are popular on this board). But since many of those renters are also looking to buy there is now a greater number of property to buy = more supply = lower prices.

    Oh yes, and if increased rent does make it harder to provide the house purchase deposit then the pressure on first time buyers could be increasing - just what the market needs when it's struggling to attract the first-time buyer....
    Never attach your ego to your position....
  • abaxas
    abaxas Posts: 4,141 Forumite
    You forget the Hamish conjecture.

    If something happens, house prices and rents up.
    If the opposite of that happens, house prices and rents up.
  • drc
    drc Posts: 2,057 Forumite
    Our rent went down 10% in September :T and we are in a middle class north London suburb.
  • my rent hasn't gone up since I moved here
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