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Debate House Prices
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Average Rent soars to £876, up 2% in 3 months...
HAMISH_MCTAVISH
Posts: 28,592 Forumite
The average monthly rent in June was £876, the highest average price on record as rents rose 2% in just three months, according to the latest rental index from FindaProperty.com.
The jump in rental yields follows a period of rapid rental price growth, which has seen average UK rents increase by 2% in three months and they are now 4.4% up compared to this time last year.
The jump in rental yields follows a period of rapid rental price growth, which has seen average UK rents increase by 2% in three months and they are now 4.4% up compared to this time last year.
“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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So do you thik this is good or bad news?0
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Graham_Devon wrote: »So do you thik this is good or bad news?
It's neither good or bad.
Just an inevitable consequence of mortgage rationing and the house price crash leading to record low house building whilst population soars.“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 -
Graham_Devon wrote: »So do you thik this is good or bad news?
Good for house prices. The higher the rent, the more people will be tempted to buy. And of course, high rents make BTL an attractive proposition for investors.
High rents will therefore put further pressure on house prices.If I don't reply to your post,
you're probably on my ignore list.0 -
Is this seasonally adjusted? June is one of the busier months for rental properties.0
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Good for house prices. The higher the rent, the more people will be tempted to buy. And of course, high rents make BTL an attractive proposition for investors.
High rents will therefore put further pressure on house prices.
Ouch.
Context and analysis.
The Graham and Geneer show doesn't handle that very well.
“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 -
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Graham_Devon wrote: »Oh, you poor fool.
Personally, I'm bearish on house prices as I think rental yields are low, so I kind of see where he's coming from.0 -
Graham_Devon wrote: »So do you thik this is good or bad news?
Given that renting is one of the best ways to throw a load of money away and set yourself up for an expensive retirement I think this is great news.
It should encourage those with deposits to get off the pot and buy, thus saving themselves a small fortune. It should encourage those without deposits to get off the pot and start saving (although that's getting tougher).
Maybe, just maybe, higher rents will encourage new housebuilding as well.
Perversely, I think, rising rents will eventually play against BTL owners - eventually the golden goose will be dead.0 -
Graham_Devon wrote: »So do you thik this is good or bad news?
Good of course.
If you collect rents it's good and if you pay them it's bad.
Not that hard to understand, is it?
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HAMISH_MCTAVISH wrote: »The average monthly rent in June was £876, the highest average price on record as rents rose 2% in just three months, according to the latest rental index from FindaProperty.com.
The jump in rental yields follows a period of rapid rental price growth, which has seen average UK rents increase by 2% in three months and they are now 4.4% up compared to this time last year.
Wow thats a lot. Makes my mortgage look cheap. Really hard to believe people are still choosing to rent with the low long fix deals available at the moment.
Fortunately for FTB's that are struggling to save a deposit because of the high rent payments, the Saffron building society are accepting a good record of rent payments as proof that people can afford a mortgage - the rate is rather high though:
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8679521/Prove-that-you-could-afford-your-rent-and-well-offer-you-a-mortgage.html0
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