Could the UK housing rental market be about to crack?

HAMISH_MCTAVISH

DannyRadclif wrote: »

not many will be able to afford the rent. .

That's the entire point.

Rents will increase until a sufficient number of people are priced out of the market and forced to share so that the remaining stock is enough to house them.

There are currently several million people sharing, and most of them would prefer to live alone. But there are not enough houses to go round.

So the market rations limited supply through price.

nearlynew

HAMISH_MCTAVISH wrote: »

Rents will increase until a sufficient number of people are priced out of the market and forced to share so that the remaining stock is enough to house them.
.

Would many landlords be prepared for this situation?

And even if they were, would they welcome it?

HAMISH_MCTAVISH

nearlynew wrote: »

Would many landlords be prepared for this situation?

And even if they were, would they welcome it?

It's already happening. It's why people share houses.

There still aren't enough houses though, and population is increasing by a million every two years, so prices must rise until more are forced to share.

This will continue until we build enough houses or population stops growing.

Graham_Devon

HAMISH_MCTAVISH wrote: »

It's already happening. It's why people share houses.

There still aren't enough houses though, and population is increasing by a million every two years, so prices must rise until more are forced to share.

This will continue until we build enough houses or population stops growing.

Sounds good. The theory that is.

Until you look at what's actually happened, i..e the reality, and rents are currently falling and arrears increasing.

HAMISH_MCTAVISH

Graham_Devon wrote: »

rents are currently falling and arrears increasing.

Actually arrears are decreasing. (although there was a slight uptick in serious arrears, total arrears have been falling markedly)

And rents are still within an uptrend. Slight fluctuations for a few months doesn't change that.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Actually arrears are decreasing. (although there was a slight uptick in serious arrears, total arrears have been falling markedly)

And rents are still within an uptrend. Slight fluctuations for a few months doesn't change that.

Indeed Hamish...

More tenants are struggling to pay their rents on time and trying to haggle with their landlords to get rents reduced.

Four in ten (41.2%) members of the Association of Letting Agents (ARLA) has reported an increase in the number of tenants struggling to meet their rental payments to landlords in the six months to March 2012.

As a result, says ARLA, an increasing number of tenants are attempting to knock down the price of their rent when negotiating with landlords. Haggling has become most prevalent in the North-East and South-West, whereas it is least prevalent in London.

Ian Potter, operations manager at ARLA, said: “With unemployment predicted to rise and average rents also increasing in some parts of the country, it seems more and more tenants are finding it impossible to make ends meet. It is likely that the same is happening for landlords, who may find their mortgage rate is rising.

“At worst, this double whammy may result in landlords defaulting on mortgages and tenants being forced to move out of a property.”

chucky

DannyRadclif wrote: »

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.

Sorry old dear Your memory must be failing you.. but you did say it was the only because of high housing benefit payments.

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.

I don't mind you being wrong but admit it if you are but you seem to be one of these dumb posters that says one things and then denies saying it.
Thanks and lots of hugs, hope you feel better.

IveSeenTheLight

shortchanged wrote: »

The more expensive properties would have to drop their rents to compete.

So you predict an increase in lower end of the market and a reduction in the higher end.

We'll see.

I guess you premise depends on how much of the higher end of the market relies on housing benefit.

IveSeenTheLight

Graham_Devon wrote: »

Indeed Hamish...

It's only been a couple of weeks Graham,
Have you forgotten this discussion already?

Overall, rent arrears have decreased

Graham_Devon wrote: »

How does he explain what? The clouds of smoke surrounding your figures?

"Its OK" states Hamish "You don't look at the severe arrears - thats noise".

Did you understand the paragraph?
It states that although severe rent increased, overall it was an improvement.

Where's the smoke

Although the number of cases with tenants with arrears of more than two months continued to climb, overall tenant arrears have improved with 9.3% of all rent late or unpaid by the end of February.

This was a decrease from 10.7% at the end of 2011.

JonnyBravo

Thrugelmir wrote: »

At some point QE will be unwound.

Something you're sure will happen? Another "Rule of 51" certainty?
Not a chance IMO.
Too much of it done now.
Everyone's at it and no-one is going to be first to stop a fledgling recovery by taking money away.... or whatever it involves.