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Could the UK housing rental market be about to crack?
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IveSeenTheLight wrote: »What is the figure compounded?
It doesn't matter we currently have a million empty properties, how that has changed over the previous decade isn't all that relevant. There may well be a long term decrease in available housing but estimating populations and house building over the longer term is voodoo maths. Government policy and the economy have a huge influence and anyone who can accurately predict those would be very very rich.IveSeenTheLight wrote: »If there are so many empty houses, then why are rents increasing?
Housing allowance may affect some areas, but it will only put pressure on elsewhere (see Newham)
Because 1 million isn't that many. Because some may need work owners can't afford. Because they may be in low demand locations. Because of a thousand and one things. The idea that every house needs to be full for prices to rise is pretty ridiculous.
I'm not saying house prices will fall greatly because of this, or trying to predict what rents will do, exactly because I don't think I know enough to do so credibly. However it isn't exactly nobel laureate level economics to surmise that a drop in money available to procure housing is more likely to decrease prices than increase it.Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...0 -
IveSeenTheLight wrote: »Quite possibly you could.
That's a life choice and some may choose not to live in those areas.
If enough are happy to, wouldn;t that increase the demand for those areas?
What would happen then?
The more expensive properties would have to drop their rents to compete.0 -
This will effect very few places outside London
That is right, I would say it will only affect London, but this will have a knock on effect on the rest of the country. The start of a downward spiral.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
DannyRadclif wrote: »That is right, I would say it will only affect London, but this will have a knock on effect on the rest of the country. The start of a downward spiral.
OK, I'll bite....
Can you explain the detailed economic theory through which you think that will work?
After all, falling house prices in Oldham have had no effect on rising prices in London.
Is this transmission mechanism a strictly one-way thing?“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 -
HAMISH_MCTAVISH wrote: »OK, I'll bite....
Can you explain the detailed economic theory through which you think that will work?
After all, falling house prices in Oldham have had no effect on rising prices in London.
Is this transmission mechanism a strictly one-way thing?
In fact what effect will the increased demand have on the other parts of he country?0 -
Average rents for the country look high only because high housing benefit payments have pushed them up, primarily in London. This is coming to an end next year. Its very simple really.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Ok then, if you say so that Housing Benefit is the only cause of high rents.DannyRadclif wrote: »Average rents for the country look high only because high housing benefit payments have pushed them up, primarily in London. This is coming to an end next year. Its very simple really.0 -
Ok then, if you say so that Housing Benefit is the only cause of high rents.
I never said that at all grow up will you. It is obvious that the government paying thousands per week for some of these Somalian families to live in prime areas was ONE OF THE REASONS for the rent bubble.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
DannyRadclif wrote: »It is obvious that the government paying thousands per week for some of these Somalian families to live in prime areas was ONE OF THE REASONS for the rent bubble.
Rent bubble? I've owned investment property in London since early 1991 and I haven't noticed anything other than steady rises and the odd dip, overall I would say that it probably wouldn't be too far from inflation (maybe marginally over inflation but certainly nowhere near a bubble).Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
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