Rents Continue Rising

geneer

HAMISH_MCTAVISH wrote: »

Yes.



Not half as much as the stick we got from housing bears when they thought we were going to get a stonking great crash.

Would that be the stonking great 2008 crash you yourself confirmed was "the biggest nominal correction in history" or words to that effect.

DervProf

HAMISH_MCTAVISH wrote: »

Not half as much as the stick we got from housing bears when they thought we were going to get a stonking great crash.

If that were to happen (yes, I know, absolutley no chance now, apparently), then I reckon that a bit of "stick" will be deserved, for some of the things some bulls have said. I'm not sure if I'll be dishing out any "stick", as I haven't been on the receiving end as much as those who are less fortunate than me. Having said that, I might give it a :beer: or two on other's behalf.

HAMISH_MCTAVISH

Percy1983 wrote: »

I fail to see how demand pushes prices up.

:wall:

Eg, if I owned a rental property, 1 person wants it can pays £400 a month (random number off top of head), demand goes up and now 5 people want to rent it... do I have to rise my price or just pick the best one and still charge £400...

In an open market, what will happen is prices will rise to ration the limited supply. Those who can't afford one of their own will have to combine their money and share one. Some landlords will choose to leave rents the same to reduce the chances of voids. Some landlords will choose to take the risk and raise the rents.

But overall, when demand exceeds supply, prices will rise.

julieq

To be fair to BTL landlords, a small business is less likely to raise rents by market rates than a big business, because it creates a point of conflict, and small businesses tend to dislike conflict because they can't afford the hassle of disputes. A large company would just put rents up by an annual increment, end of.

I'm going to regret asking this, but Geneer, tell us pray how an increase in demand for housing overall (including rented) is going to put the value of the actual housing down? If rent goes up, yield increases, acceptable capital outlay increases for investors, prices increase. It really is that simple.

geneer

HAMISH_MCTAVISH wrote: »

:wall:
In an open market, what will happen is prices will rise to ration the limited supply. Those who can't afford one of their own will have to combine their money and share one. Some landlords will choose to leave rents the same to reduce the chances of voids. Some landlords will choose to take the risk and raise the rents.

But overall, when demand exceeds supply, prices will rise.

So what happens to house prices when demand reduces Hamish.

I only ask because it seems to be those renters must be coming from somewhere.

HAMISH_MCTAVISH

geneer wrote: »

So what happens to house prices when demand reduces Hamish.

That entirely depends on what happens to supply, geneer.

I only ask because it seems to be those renters must be coming from somewhere.

Funny that, it also seems the houses for them to rent must be coming from somewhere too....

Percy1983

HAMISH_MCTAVISH wrote: »

In an open market, what will happen is prices will rise to ration the limited supply. Those who can't afford one of their own will have to combine their money and share one. Some landlords will choose to leave rents the same to reduce the chances of voids. Some landlords will choose to take the risk and raise the rents.

But overall, when demand exceeds supply, prices will rise.

Percy1983 wrote: »

Or would greed take hold and take advantage of the situation?

So I was right the first time?

Out,_Vile_Jelly

Back on topic, my rent has not gone up.

Pimperne1

B_Blank wrote: »

The fact that Hamish champions high rent inflation. Which is basically the exploitation of the young and poor for the benefit for the rich, greedy and landed classes makes me SICK. It is also terrible for the economy when people are having to pay alot out on rents and so cant save a deposit to buy a house, and cant spend to help the economy.

Hamish, its pretty disgusting how much you love inflation.

Yeah I pretty much agree with all of that. Also pretty disgusting are people who run BUPA - keeping poor ill people dependant on the NHS instead. And those guys who operate Waitrose, making poor people go to Aldi instead. Those people who send their kids to fee paying school making poor kids go to state run schools. There must be many more.

Pimperne1

Out,_Vile_Jelly wrote: »

Back on topic, my rent has not gone up.

It won't if you post on one of these boards. Your rent only ever stays the same or goes down (it will also be lower than you would pay to buy the property - no matter where you live - usually considerable lower).