Rents to soar again in 2012...

HAMISH_MCTAVISH

On an annual basis, rents have risen in all regions – most strongly in London and the South East (up 4.2%). The smallest rises were in the North East and the South West.

David Brown, commercial director of LSL Property Services, said: “Following their relentless march upward throughout the year, rent rises have taken a pause for breath.

“Landlords are looking to avoid having properties vacant over the Christmas period, and can be less aggressive with pricing as tenant activity slows in the run up to the New Year.

“But across the country, the limited supply of rental accommodation means there will still be strong upward pressure on rents in the early part of 2012.”

http://www.planetpropertyblog.co.uk/wp-content/uploads/2011/12/rents2.jpg



With total rent arrears falling markedly in 2011 despite rents rising, clearly there is room for more rent rises in 2012.

Although admittedly there was a tiny uptick in the numbers in serious arrears from 1.9% to 2.2% of tenants, this is nothing other than the market rationing scarce supply by raising prices until demand reduces.

As we create 150,000 more households each year than we build houses, rents will surely rise again to price out the bottom rung and free up housing for the higher earners who should be buying houses but cannot due to mortgage rationing.

geneer

zzzzzzzzzzzzzzzzz

abaxas

People opting out of society and becoming chavs to SOOOOOAAAAR in 2012.

nickj_2

one of my friends has just had to rent - the house he was after was 800pcm and was up for a 6 month lease - he told the owner he would take it for a year and pay 700pcm to which they agreed , the power is not with the landlords so much now , no one can afford a couple of months with no rent coming in

Itismehonest

Rents to soar again in 2012...

Maybe, in some areas.
I think there will also be many LLs (particularly those who have been charging high rents to those on housing benefit which will no longer be covered) that find the market in their area is hit & that more realistic rents will have to be charged if they want to fill their properties.

McKneff

Is it this week week that housing benefit is capped at £400 a week.

There was a fella on the tv yesterday who said his rent was £1K a week,:eek: which we, the taxpayers were paying because he was unemployed and claimed the whole lot as HB. Now if all these people have to move out of these properties and obviously there will be thousands, isnt that going to leave an awful lot of houses empty
thereby forcing landlords to drop their exorbitant prices.

shortchanged_2

“Landlords are looking to avoid having properties vacant over the Christmas period, and can be less aggressive with pricing as tenant activity slows in the run up to the New Year.

I have to post issue with this. Is there some special reason why people don't need anywhere to live over Christmas?

Does this mean that there are thousands of people who decide to remain homeless over Christmas then suddenly think 'We'd better rent a house in the new year'?

geneer

As we all know all rents in all areas are changed on a week by week basis.

Graham_Devon

shortchanged wrote: »

“Landlords are looking to avoid having properties vacant over the Christmas period, and can be less aggressive with pricing as tenant activity slows in the run up to the New Year.

I have to post issue with this. Is there some special reason why people don't need anywhere to live over Christmas?

Does this mean that there are thousands of people who decide to remain homeless over Christmas then suddenly think 'We'd better rent a house in the new year'?

I thought the same. I can see less tenants looking to move around christmas....but properties sitting vacant at christmas? Doesn't really add up. Why would people suddenly leave their rental properties around christmas and not rent out somewhere else?

IveSeenTheLight

Graham_Devon wrote: »

I thought the same. I can see less tenants looking to move around christmas....but properties sitting vacant at christmas? Doesn't really add up. Why would people suddenly leave their rental properties around christmas and not rent out somewhere else?

When I moved out of my family home and into my first property, I rented.
I decided to stay at home for Christmas and move into the rental property at the start of the new year.

There will be many who wish to wait until the new year before moving.

Of course that means if properties are empty at that time (and there are an abundance of them), it bodes well for the tenant to negotiate.

Generali

Rents rising from £660pcm to £720pcm in 3 years is a rise of 2.95% pa.

At the same time the RPI has increased from 216 to 238.5, a rise of 3.3% pa. Average (median) earnings rose from £388.80 to £403.90 (according to ASHE, the Government study of earnings), an increase of 1.4%pa.

Rents are rising faster than wages but more slowly than the average basket of goods Britons buy. I wouldn't count that as soaring personally although clearly that is subjective.

LSL showed rents fell last month by 0.4%(?). They put that down to seasonal factors which seems reasonable - a void lasting into December is likely to last well into January, a fact I recently used to my advantage when negotiating on a new rental house.

As to what will happen to rents next year? Time will tell. Clearly the price of everything can't continue to rise faster than wages indefinitely. Something has to give although that something needn't be rents.