Views on rent costs post Brexit

AG47

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.

So rising house prices mean lower rents?

Some people try to say rents always go up no matter what, this is not true, nothing can always go up and never come down for dips.

N1AK

AG47 wrote: »

So rising house prices mean lower rents?

Some people try to say rents always go up no matter what, this is not true, nothing can always go up and never come down for dips.

I think the relationship between house prices and rents is sufficiently indirect that any rule based on directly comparing the two is always going to be flawed.

It sounds appealing on a 'common sense' level to assume that if something goes down in price then the price of borrowing it would be lower; however housing is purchased and funded on a multi-decade basis. This means their is no direct relationship between house prices now and the price paid for houses being rented out. Add the fact that most houses are funded via debt and the influence of the price of borrowing and the headline price and any link is already tenuous, and there's plenty of other factors that we've ignored.