Could the UK housing rental market be about to crack?

chucky

GDB2222 wrote: »

I agree that there must be a maximum amount that renters are prepared to pay. There must be a significant number who can either live at home with their parents or go into a flatshare.

Effective demand. The quicker people grasp and understand that concept, the quicker they'll understand.

IveSeenTheLight

GDB2222 wrote: »

I agree that there must be a maximum amount that renters are prepared to pay. There must be a significant number who can either live at home with their parents or go into a flatshare.

Most people prioritise their finances such that rent will predominantly be placed higher than many other expenditures from income.
Generally, arrangements are made to pay for accomodation immediately after income is received securing these costs ahead of lower priorities later in the month.

Your point about people going into flatshares simply means that there is potential for a higher household income.

There is an argument that with the housing shortage, a higher perdentage of the UK will be sharing property.

shortchanged wrote: »

I started a thread about this not too long ago where I feel we are reaching pretty much peak rent levels with the economic circumstances we have.

Household incomes are decreasing and there is less money to go around. It's pretty basic economics really.

Agreed, but as above, a roof over your head is prioritised higher than other expenditures.

shortchanged_2

IveSeenTheLight wrote: »

Agreed, but as above, a roof over your head is prioritised higher than other expenditures.

But the simple fact is ISTL if people can't afford it they can't afford it.

There simply isn't a bottomless pit of money which is what some LL's seem to think there is.

Sampong

:cool:

shortchanged wrote: »

But the simple fact is ISTL if people can't afford it they can't afford it.

There simply isn't a bottomless pit of money which is what some LL's seem to think there is.

Have to agree with this. There is no doubt that there is a shortage of accomodation, and there is no doubt that there has been increased rental demand over the past few years, but once again there are some on here who seem to think rents will continue to increase forever which of course cannot be the case.

Who knows, maybe rents will continue to rise and people will just stop eating

StevieJ

IveSeenTheLight wrote: »

Your point about people going into flatshares simply means that there is potential for a higher household income.

There is an argument that with the housing shortage, a higher perdentage of the UK will be sharing property.

It will be like the trains in India soon :eek:

yertiz_2

Unless the situation changes in the next few years my sons now at uni will have to move back home when they finish until they can earn enough to save a deposit/pay mortgage, or rent. (Oh, and pay off student loans.) Their friends are in the same boat. Looks like they will be dependant on the Bank of M & D for a while; would we qualify for QE?

FTBFun

yertiz wrote: »

Unless the situation changes in the next few years my sons now at uni will have to move back home when they finish until they can earn enough to save a deposit/pay mortgage, or rent. (Oh, and pay off student loans.) Their friends are in the same boat. Looks like they will be dependant on the Bank of M & D for a while; would we qualify for QE?

How is this different than in the past? I had to live at home for a bit after uni, before and after my gap year, and only moved permanently away when I got a job in London.

vax2002

The immigration bombshell is about to go off.

Thrugelmir

GDB2222 wrote: »

Plus, it's clearly govt. policy to support house prices, as otherwise the banks will be in even worse trouble.

Its policy to support banks, hence asset prices have been relatively stable.

At some point QE will be unwound. Removing a major prop for house prices.

yertiz_2

FTBFun wrote: »

How is this different than in the past? I had to live at home for a bit after uni, before and after my gap year, and only moved permanently away when I got a job in London.

I see your point. On re-reading my post I should have been a bit clearer. If the situation doesnt change within the next few years I can see them living with us for the next 20 years :eek: