Rents up again.....

MacMickster

Thrugelmir wrote: »

On a commercial level rents need to be higher.

However that merely reflects the fact that property is overpriced.

As average incomes come under enormous cost pressures and low rises.

Can people afford the rent? Or will they seek a cheaper alternative.

So more property comes to market.

Property prices fall back so rents will become both affordable and commercially viable.

The coiled up spring of the great property boom has a fair way yet to unwind.

Excellent point very well made.

When the cuts in housing benefit arrive landlords will begin to find that they either reduce rents or find themselves without a rental income to set against their costs (for BTL landlords this means that they can't pay their mortgages).

This will lead to more properties coming on to the market at a time when mortgages remain difficult to obtain for many. Consequently, house proices will fall.

geneer

The bull interpretation of the rent/buy supply/demand model is flawed and nieve.

It also exposes a level of stunning hypocricy.
In the one hand ol' Spamish rails against those who saw the crash coming for their alleged "Glee" in "The pain of innocent homeowners, babies and kittens".
In the other hand he gloats over cost increases to families and individual to happen to rent.
Bzzt. Does not compute.

ukcarper

Where I am the LHA for a 3 bed is £860 a month on rightmove there are 24 properties to let and only 2 are below £860 which are both Let agreed. Of the remaining 22, 14 are let agreed at rents of between £900 and £1100.