Rents, as predicted, on the up

System

Crashy_Time wrote: »

Looks like the silly money for basic accommodation meme is done in Aberdeen at least.

That is silly money. £550pcm for a microscopic grubby flat. No thanks.

Generali

caronoel wrote: »

We won't see a big uptick in rents until the new tax grab on landlords starts to bite over the next few years.

The experience in Ireland, when they disallowed mortgage interest, was that rents and tax evasion sky rocketed. The policy was quickly reversed.

Do you have a link? (I mean that in a positive, non-aggressive, I'm really interested to find out more kind of way).

As far as I can see from a quick Google:

http://www.rentalincome.ie/tax-allowable-expenses/mortgage-interest/

the changes brought in the early C21st don't seem to have been reversed unless that website is out of date.

According to that website, tax changes were introduced in 2009. According to this website, rents were in freefall by 2009:

http://www.globalpropertyguide.com/Europe/Ireland/Price-History

Here is the relevant graph:

mwpt

Generali wrote: »

Do you have a link? (I mean that in a positive, non-aggressive, I'm really interested to find out more kind of way).

As far as I can see from a quick Google:

http://www.rentalincome.ie/tax-allowable-expenses/mortgage-interest/

the changes brought in the early C21st don't seem to have been reversed unless that website is out of date.

According to that website, tax changes were introduced in 2009. According to this website, rents were in freefall by 2009:

http://www.globalpropertyguide.com/Europe/Ireland/Price-History

Here is the relevant graph:

I'm also interested in an answer to this. I saw this used as a stat over on property118 but also saw it debunked on HPC. So I'm not sure which is correct, though if the standard of intellect on show at property118 is anything to go by I'm not inclined to trust them much.

westernpromise

Whether it’s true or not, Ireland strikes me as a dubious comparator to the UK. Ireland joined the euro and had interest rates set far too low in consequence. This triggered a fairly obvious credit bubble in which surging demand was met by overproduction of houses. If you’ve flat-out built too many houses, then clearly both sales and rental prices can potentially fall at the same time.

The similarity to the UK stops short of that point, IMO. If a classic bubble feature is the overproduction of something worth not very much, such as flash memory, dot-com companies, Spanish timeshares and Irish rental properties, it’s not apparent any such credit-driven overproduction of housing is yet afoot (to my knowledge) here, where all the talk is of a housing shortage. There are perhaps some signs of it in the shape of Docklands-style tower blocks in sǝloɥʇᴉɥs like Nine Elms at optimistically Docklands-style prices. But these aren’t additional developments beyond what’s actually needed; they’re part of that existing level of new building we already have, and which is insufficient to meet demand.

With Spanish holiday lets, both values and rents did indeed fall, and I’d suspect something similar would have happened in Ireland. In London and the south-east the issue is lack of stock both to rent and to buy.

Crashy_Time

They are not going up round my way.

robmatic

Crashy_Time wrote: »

They are not going up round my way.

They went up by 5.7% in Edinburgh last year according to Citylets.

Crashy_Time

robmatic wrote: »

They went up by 5.7% in Edinburgh last year according to Citylets.

Does their data include long term tenants with private landlords? Does it even include achieved rents, or just asking (wishing) ? :rotfl:

wotsthat

Crashy_Time wrote: »

They are not going up round my way.

.............

Crashy_Time wrote: »

I only know about my rent.

System

wotsthat wrote: »

.............

He's like a real life parody.

Anyway, good to know fictional bedsits with fictional landlords remain affordable

andybenw

Asking prices on spare room are rising round my way. These are prices that tend not to be haggled and are designed for extremely quick turnover of rooms so I take them as a reasonable indicator.