Views on rent costs post Brexit

AFF8879

Hey everyone,

A lot of posts here understandably focus on house prices but I'd be interested to hear people's views on the rental market. I'm likely to be going to the USA on a 2-year assignment next year and would be looking to rent out my 1-bed flat in London during this time.

Some thoughts I had:
- people who either do not want to sell / cannot sell due to negative equity / etc in the likely event of (albeit perhaps only temporary) house price drops look to rent out their properties, increasing supply and pushing rents down
- BTL changes meaning fewer "investment" landlords, decreasing supply and pushing rents up

I'd be interested to hear what everyone else thinks within this myriad of unpredictability

DCFC79

AFF8879 wrote: »

Hey everyone,

A lot of posts here understandably focus on house prices but I'd be interested to hear people's views on the rental market. I'm likely to be going to the USA on a 2-year assignment next year and would be looking to rent out my 1-bed flat in London during this time.

Some thoughts I had:
- people who either do not want to sell / cannot sell due to negative equity / etc in the likely event of (albeit perhaps only temporary) house price drops look to rent out their properties, increasing supply and pushing rents down
- BTL changes meaning fewer "investment" landlords, decreasing supply and pushing rents up

I'd be interested to hear what everyone else thinks within this myriad of unpredictability

It's a but hard to predict what will happen once we leave the EU unless of course you have a crystal ball.

Generali

AFF8879 wrote: »

Hey everyone,

A lot of posts here understandably focus on house prices but I'd be interested to hear people's views on the rental market. I'm likely to be going to the USA on a 2-year assignment next year and would be looking to rent out my 1-bed flat in London during this time.

Some thoughts I had:
- people who either do not want to sell / cannot sell due to negative equity / etc in the likely event of (albeit perhaps only temporary) house price drops look to rent out their properties, increasing supply and pushing rents down
- BTL changes meaning fewer "investment" landlords, decreasing supply and pushing rents up

I'd be interested to hear what everyone else thinks within this myriad of unpredictability

Falling house prices tend to coincide with higher rents so if you think house prices will fall there's a good chance rents will go up too.

Bear in mind that there are so few data points that it is very hard to say with any certainty if that is coincidence or not.

mwpt

Generali wrote: »

Falling house prices tend to coincide with higher rents so if you think house prices will fall there's a good chance rents will go up too.

Bear in mind that there are so few data points that it is very hard to say with any certainty if that is coincidence or not.

I see this statement repeated often enough but I never see the stats or graphs which demonstrate it. I know you don't have an ulterior motive Generali, but have I missed some thread from the past where all this was shown and now you guys are happy to repeat it without posting a source?

Generali

mwpt wrote: »

I see this statement repeated often enough but I never see the stats or graphs which demonstrate it. I know you don't have an ulterior motive Generali, but have I missed some thread from the past where all this was shown and now you guys are happy to repeat it without posting a source?

TBH I've been told it so often I just believe it. The data will be available. I'll look them up.

HAMISH_MCTAVISH

mwpt wrote: »

I see this statement repeated often enough but I never see the stats or graphs which demonstrate it. I know you don't have an ulterior motive Generali, but have I missed some thread from the past where all this was shown and now you guys are happy to repeat it without posting a source?

It was discussed extensively throughout the years with a lot of supporting data, albeit that was in the context of the last crash/aftermath, and to be fair no two crashes are the same.

Midas

Index of private housing rents 2005-13, from the ONS. In London rents were pretty stable through the financial crash.

http://webarchive.nationalarchives.gov.uk/20160105160709/http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm:77-304792

Midas

AFF8879 wrote: »

Hey everyone,

A lot of posts here understandably focus on house prices but I'd be interested to hear people's views on the rental market. I'm likely to be going to the USA on a 2-year assignment next year and would be looking to rent out my 1-bed flat in London during this time.

Some thoughts I had:
- people who either do not want to sell / cannot sell due to negative equity / etc in the likely event of (albeit perhaps only temporary) house price drops look to rent out their properties, increasing supply and pushing rents down
- BTL changes meaning fewer "investment" landlords, decreasing supply and pushing rents up

I'd be interested to hear what everyone else thinks within this myriad of unpredictability

Where is the flat? My guess would be that rents will be pretty stable over the next 2-3 years in London. There is not going to be a sudden exodus of people out of the capital because of Brexit - London will remain the centre of the UK economy and people will still want to be hear for employment reasons. There may even be a surge in immigration from the EU as people seek to get settled here before possible new restrictions are put in place. The only bit of London where I'd see the potential for a significant drop in rents is in high-end flats near the City - there is something of an oversupply, and city firms *might* start moving some of their staff abroad. So, if I were you I would be happy to rent it out, especially as now probably isn't the best time to sell.

System

Why has Generali been PPR'd again?

mwpt

Joeskeppi wrote: »

Why has Generali been PPR'd again?

Moderators are brexit supporters?

mayonnaise

Joeskeppi wrote: »

Why has Generali been PPR'd again?

It's a sign of the times.
Part of the peasants' revolt I suppose.
Intelligence and expertise no longer needed.