Rents soar to (another) record high

Crashy_Time

padington wrote: »

Bet you wished you did

What, believe the hype about London?

Crashy_Time

http://www.citylets.co.uk/research/reports/pdf/Citylets-Quarterly-report-q4-15.pdf?ref=reports

ukcarper

Crashy_Time wrote: »

http://www.citylets.co.uk/research/reports/pdf/Citylets-Quarterly-report-q4-15.pdf?ref=reports

That link shows Edinburgh rents have increased 23% over the last 5 years.

Crashy_Time

ukcarper wrote: »

That link shows Edinburgh rents have increased 23% over the last 5 years.

My rent has slightly decreased over the last five years so I don`t really have much thoughts on that. It claims that Aberdeen is seeing rent drops that are unprecedented (Except NI during the last crash HPC hive mind is telling me)

wotsthat

Crashy_Time wrote: »

My rent has slightly decreased over the last five years so I don`t really have much thoughts on that. It claims that Aberdeen is seeing rent drops that are unprecedented (Except NI during the last crash HPC hive mind is telling me)

You used to live on the same street as Fred Goodwin didn't you? Now you're on a street where there are loads of boarded up properties and benefits claimants have a higher budget.

You've dealt with rising rents in Edinburgh by trading down and getting less for your money.

gadgetmind

Crashy_Time wrote: »

the North of England and Midlands pretty stuffed house price wise

A bungalow on our street (oop North) recently sold for £250k more than purchase price of 6 months earlier despite having planning permission refused to knock it down to build something(s) bigger.

Not all of "the North" is terraces, cobbles and washing lines!

System

I guess people leaving Aberdeen will put more upward pressure on Edinburgh rents soon. At least Crashy's rent won't go up as he can live in the park.

Crashy_Time

wotsthat wrote: »

You used to live on the same street as Fred Goodwin didn't you? Now you're on a street where there are loads of boarded up properties and benefits claimants have a higher budget.

You've dealt with rising rents in Edinburgh by trading down and getting less for your money.

Well the Fred Goodwin street was a (nice) room in a shared house, and that rent was about £100 p.m cheaper than now, but you need to tell the readers Wotsit that the "boarded up" bit was something you read in someone`s post where they spoke about visiting a mate in Edinburgh 20 years ago or something, nothing to do with my posts at all, nothing is boarded up around here. You spend too much time on here mate, either your grasp on reality is slipping or you need to lie from time to time to make your narrative work? As I have said many times this flat is the same size as one I had in the late 90`s at 350 p.m, but only 50 p.m more, so we can probably say that the late 90`s one was on the pricey side, or whatever, but my rent has basically gone nowhere in that time.

Crashy_Time

Joeskeppi wrote: »

I guess people leaving Aberdeen will put more upward pressure on Edinburgh rents soon. At least Crashy's rent won't go up as he can live in the park.

You don`t know much about Aberdeen or Edinburgh, or anything really, do you Joe?

westernpromise

Crashy_Time wrote: »

my rent has basically gone nowhere in that time.

So if rents have gone nowhere, would I be correct in surmising that house prices have gone up over that period?

You see I think these are connected causally. Rents can only go up when there's more demand than supply, and demand to rent goes up when the alternative to renting (buying) looks bad.

Conversely, if house prices are going up, rents will tend not to; you are better off owning than renting, so rental demand stays weak.

So if rents have gone nowhere, house prices must have gone up.

The obvious exceptions to this are boom towns and ghost towns. If a place booms like London then both rents and prices can go up, although prices would tend to go up more. This is what we have seen in London, with 300% house price inflation over the last 15 years but only ~100% rental inflation.

In ghost towns everyone leaves so nobody either buys or rents.

The question really is will your locale turn into a ghost town? If so life will get cheaper but you do wonder when if ever it would be wise to buy in.

I often wonder what became of the last owners of property in places like this:

https://upload.wikimedia.org/wikipedia/commons/b/bd/Bannack.jpg

What did the owners of the Hotel Meade do? Walk away, write everything off and get a salaried job elsewhere? Only possible if they owned it outright, I guess.